ILLUSTRATION 15.Rajan and Rajani are partners in a firm. Their capitals were-Rajan 3,00,000;Rajaniき2,00,000. During the year ended 31st March, 2016 the firm earned a profit of1,50,000. Calculate the value of goodwill of the firm on the basis of capitalisation ofaverage profits assuming that the normal rate of return is 20%.

ILLUSTRATION 15.Rajan and Rajani are partners in a firm. Their capital

1.	ILLUSTRATION 15.Rajan and Rajani are partners in a firm. Their capitals were-Rajan 3,00,000;Rajaniき2,00,000. During the year ended 31st March, 2016 the firm earned a profit of1,50,000. Calculate the value of goodwill of the firm on the basis of capitalisation ofaverage profits assuming that the normal rate of return is 20%.
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