Answer:
To calculate the value of goodwill of Nipun and Prisha using different methods, let's proceed step by step based on the given information.
### Given Information:
- Average Capital Employed = Rs. 12,00,000
- Profit for the firm for past three years:
- 2017: Rs. 1,80,000
- 2018: Rs. 1,60,000
- 2019: Rs. 2,60,000
- Normal rate of return = 10%
- Remuneration to each partner = Rs. 3,000 per month
- Assets = Rs. 13,50,000
- Liabilities = Rs. 1,50,000
### Step 1: Calculate Average Profit
Average Profit = (1,80,000 + 1,60,000 + 2,60,000) / 3
Average Profit = 5,00,000 / 3
Average Profit = Rs. 1,66,666.67 (approx.)
### Step 2: Calculate Super Profit
Super Profit = Average Profit - (Normal Rate of Return * Average Capital Employed)
Super Profit = 1,66,666.67 - (0.10 * 12,00,000)
Super Profit = 1,66,666.67 - 1,20,000
Super Profit = Rs. 46,666.67 (approx.)
### Step 3: Calculate Capitalisation of Super Profit
Goodwill based on Capitalisation of Super Profit = Super Profit * 100 / Normal Rate of Return
Goodwill = 46,666.67 * 100 / 10
Goodwill = Rs. 4,66,666.70 (approx.)
### Step 4: Calculate Capitalisation of Average Profit
Goodwill based on Capitalisation of Average Profit = Average Profit * 2
Goodwill = 1,66,666.67 * 2
Goodwill = Rs. 3,33,333.34 (approx.)
### Summary of Goodwill Values:
(i) At two years' purchase of Average Profit: Rs. 3,33,333.34
(ii) At two years' purchase of Super Profit: Rs. 4,66,666.70
(iii) On the basis of capitalisation of super profit: Rs. 4,66,666.70
(iv) On the basis of capitalisation of average profit: Rs. 3,33,333.34
These calculations provide the values of goodwill using different methods based on the given financial data and assumptions.
