Total Assets of the Firm = ( Sundry Assets + Stock )
= Rs. ( 1,00,000 + 20,000)
= Rs. 1,20,000
Current Liabilities of the Firm = Rs. 10,000
Capital Employed = ( Total Assets – Current Liabilities)
= Rs. ( 1,20,000 – 10,000)
= Rs. 1,10,000
Normal Profits = Capital Employed `\times` `"Normal Rate of Return"/100`
= Rs. (1,10,000 × 8100)
= Rs. 8,800
Goodwill = Super Profits `\times` No. of years of Purchase
60,000 = Super Profit `\times` 4
Super Profits = Rs. (`60,000/4`)
= Rs. 15,000.
Super Profits = Average Actual Profits – Normal Profits
15,000 = Average Actual Profits – 8,800
Average Actual Profits = Rs. ( 15,000 + 8,800 )
= Rs. 23,800.