Akash and Mita were partners in a firm sharing profits and losses in the ratio of 5: 3. Their capitals were ₹ 9,00,000 and ₹ 6,00,000 respectively.…

Goodwill = Super Profit × Number of years’ purchase Super Profit = Average Profit − Normal Profit Corrected Profit of $\displaystyle 2024$-$\displaystyle 25$ after adjustment of undervaluation of closing stock = $\displaystyle 6{,}50{,}000$ + $\displaystyle 50{,}000$ = ₹$\displaystyle 7{,}00{,}000$ Average Profit = $\displaystyle 5{,}50{,}000$ + $\displaystyle 5{,}00{,}000$ + ($\displaystyle 1{,}50{,}000$) + $\displaystyle 7{,}00{,}000$ $\displaystyle 4$ = $\displaystyle 16{,}00{,}000$ $\displaystyle 4$ = ₹$\displaystyle 4{,}00{,}000$ Capital Employed = $\displaystyle 9{,}00{,}000$ + $\displaystyle 6{,}00{,}000$ = ₹$\displaystyle 15{,}00{,}000$ Normal Profit = Normal Rate of Return x Capital Employed $\displaystyle 100$ = $\displaystyle 15$/$\displaystyle 100$ × $\displaystyle 15{,}00{,}000$ = ₹$\displaystyle 2{,}25{,}000$ Super Profit = $\displaystyle 4{,}00{,}000$ − $\displaystyle 2{,}25{,}000$ = ₹$\displaystyle 1{,}75{,}000$ Goodwill = $\displaystyle 1{,}75{,}000$ × $\displaystyle 2$ = ₹$\displaystyle 3{,}50{,}000$