Dhruv and Seema were partners in a firm sharing profits and losses in the ratio of $\displaystyle 2$ : 3. Their capitals were $\displaystyle 18,00,000$ and ₹ $\displaystyle 12,00,000$ respectively. The normal rate of return was $\displaystyle 15$%. The profits of the last four years were : ( ) $\displaystyle 2021$ - $\displaystyle 22$ $\displaystyle 7,75,000$ $\displaystyle 2022$ - $\displaystyle 23$ $\displaystyle 5,00,000$ $\displaystyle 2023$ - $\displaystyle 24$ $\displaystyle (75,000)$ $\displaystyle 2024$ - $\displaystyle 25$ $\displaystyle 7,00,000$ The closing stock for the year $\displaystyle 2024$ - $\displaystyle 25$ was undervalued by $\displaystyle 1,00$,000. Goodwill of the firm is to be valued at three years' pu rchase of last four years' average super -profits. Calculate the value of goodwill of the firm.

=  Goodwill Super Profit Number of years’ purchase ($\displaystyle 1$/$\displaystyle 2$) = − Super Profit Average Profit Normal Profit Corrected Profit of $\displaystyle 2024$-$\displaystyle 25$ after adjustment of undervaluation of closing stock = $\displaystyle 7,00,000$ + $\displaystyle 1,00,000$ = `$\displaystyle 8,00,000$ = Average Profit $\displaystyle 7,75,000$ + $\displaystyle 5,00,000$ + $\displaystyle (75,000)$ + $\displaystyle 8,00,000$ $\displaystyle 4$ = $\displaystyle 20,00,000$ $\displaystyle 4$ = `$\displaystyle 5,00,000$ ($\displaystyle 1$/$\displaystyle 2$) Capital Employed = $\displaystyle 18,00,000$ + $\displaystyle 12,00,000$ = `$\displaystyle 30,00,000$ = Normal Profit Normal Rate of Return x Capital Employed $\displaystyle 100$ =  $\displaystyle 15$/$\displaystyle 100$ $\displaystyle 30,00,000$ = `$\displaystyle 4,50,000$ ($\displaystyle 1$/$\displaystyle 2$) = − Super Profit $\displaystyle 5,00,000$ $\displaystyle 4,50,000$ = `$\displaystyle 50,000$ =  Goodwill $\displaystyle 50,000$ $\displaystyle 3$ = `$\displaystyle 1,50,000$