A partnership firm earned net profits during the past three years as follows Year ended 31st March 2...........

A partnership firm earned net profits during the past three years as follows:

Year ended	31st March, 2019	31st March, 2018	31st March, 2017
Net Profit (Rs)	2,30,000	2,00,000	1,70,000

Capital investment in the firm throughout the above-mentioned period has been Rs 4,00,000. Having regard to the risk involved, 15% is considered to be a fair return on the capital. The remuneration of the partners during this period is estimated to be Rs 1,00,000 p.a.

Calculate value of goodwill on the basis of two years' purchase of average super profit earned during the above-mentioned three years. (3 marks)

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