CA CPT Model Test Paper 1 with solutions for online practice

The profit and losses for the last years are 2007-08 losses Rs. 10,000; 2008-09 losses Rs. 2,500; 2009-10 profits Rs. 98,000 & 2010-11 profits Rs. 76,000. The average capital employed in the business is Rs. 2,00,000. The rate of interest expected from capital invested is 12%. The remuneration of partners is estimated to be Rs. 1,000 per month not charged in the above losses/profits. Calculate the value of goodwill on the basis of two years purchase of super profits based on the average of four years.