Arrange the following steps for calculation of goodwill using the Super Profit Method:

(A) Calculate goodwill by multiplying the super profits by the given number of years' purchase.

(B) Calculate the super profits by deducting normal profit from the average profits.

(C) Calculate the normal profit on the firm's capital on the basis of the normal rate of return.

(D) Calculate the average profit.

Choose the correct answer from the options given below:

(D), (C), (B), (A)

Correct answer: Option (2) → (D), (C), (B), (A)

Concept: Super Profit Method of valuing goodwill, per Reconstitution of a Partnership Firm – Admission of a Partner.

The NCERT steps in order: (D) calculate the average profit → (C) calculate normal profit on the firm’s capital using the normal rate of return → (B) super profit = average profit – normal profit → (A) goodwill = super profit × number of years’ purchase. Hence D, C, B, A.