Anupma, Purnima and Ruchika are partners in a business. Balances in their Capital and Current Account as on 31st March, 2019 were :
`{:(,"Capital Account (Rs.)","Current Account (Rs.)"),("Anupma"," 6,00,000"," 60,000 (Dr.)"),("Purnima"," 5,00,000"," 30,000 (Dr.)"),("Ruchika"," 5,00,000"," 10,000 (Cr.)"):}`
The firm earned an average profit of Rs. 2,40,000. If the normal rate of return is 12%, find the value of goodwill by Capitalisation of Average Profit Method.

Explanation

Value of Goodwill Rs. 4,80,000.