Accountancy > Accounting For Partnership Firms > Valuation Of Goodwill
P and Q are partners in a firm sharing profits and losses equally. They admitted R into the partnership firm on April, 2024. It was decided to value goodwill at 2 years' purchase of super profits. The capital of the firm of P and Q was ₹5,00,000 and the normal rate of return on capital employed was 10%. During the year ended March, 2024, the profit of the firm was ₹2,10,000. The value of goodwill of the firm was :
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