From the following information relating to a partnership firm, find out the value of its goodwill based on 3 years purchase of average profits of the last 4 years:
(a) Profits of the years 2015, 2016, 2017 and 2018 are Rs.10,000, Rs.12,500, Rs.12,000 and
Rs.11,500 respectively.
(b) The business was looked after by a partner and his fair remuneration amounts to Rs.1,500
per year. This amount was not considered in the calculation of the above profits.
