From the following information, calculate the value of goodwill of M/s Shiv and Shahid:

From the following information, calculate the value of goodwill of M/s Shiv and Shahid:

i) At three year’s purchase of Average Profit.

ii) At three year’s purchase of Super Profit

iii) On the basis of Capitalisation of Super Profit

iv) On the basis of Capitalisation of Average Profit.

Information:

a) Average capital employed in the business – ₹ 7,50,00.

b) Net Trading results of the firm for the past years: Profit for 2020 – 21 – ₹ 2,25,000; Loss for 2021-22 – ₹ 1,87,500; Profit 2022 – 23 – ₹ 6,37,500.

c) Rate of return expected from capital having regard to the risk involved – 15%.

d) Remuneration to each partner for his service treated as a charge on profits – ₹ 3,750 per month.

e) Assets (excluding goodwill) – ₹ 9,00,000; Liabilities – ₹ 75,000.