Firms capital in a business is ₹200,000. The normal rate of return on firm capital is 15%. During the year, the firm earned a profit of ₹48,000. Calculate goodwill on the basis of 3 years purchase of super profit.

₹54,000

The correct answer is Option (1) - Rs. 54,000.

Capital = ₹200,000
Normal rate of return = 15%
NORMAL PROFIT = Capital x Rate of return/100
                        = 200000 x 15/100
                        = ₹30000

Actual profit = ₹48000

Super profit = Actual profit - Normal profit
                  = 48000 - 30000
                  = ₹18000

Goodwill = Super profit x No of years purchase
             = 18000 x 3
             = ₹54000