A and B are partners. They admit C for `(1)/(4)`th share in profits. For this purpose goodwill is to be valued at three year's purchase of super profits.
Following information is provided to you :
`{:(,"Rs."),("A's Capital","5,00,000"),("B's Capital","4,00,000"),("General Reserve","1,50,000"),("Profit & Loss A/c (Cr.)","30,000"),("Sundry Assets","12,00,000"):}`
The normal rate of return is 15% p.a Average Profits are Rs. 2,00,000 per year. You are required to calculate C's share of goodwill.

Answer

C's share of goodwill Rs. 28,500

Explanation

Sundry Assets will be ignored.