question_answer

The capital of the firm of X and Y is Rs.10,00,000 and the market rate of interest is 15%. Annual Salary to the partners is Rs. 60,000 each. The profit for the last three years were Rs. 3,00,000; Rs. 3,60,000 and Rs. 4,20,000. Goodwill of the firm is to be calculated on the basis of two years purchase of last three years average super profits. Goodwill of the firm will be:

A) 1,50,000 

B) 1,60,000 

C) 1,70,000

D) 1,80,000