Viraj, Harsh and Akhil are partners in a 1firm sharing profits and losses in the ratio of 4/9: 1/3:2/9. Akhil dies on 31st March, 2022. Viraj acquires 4/9 of Akhil’s share and the balance is acquired by Harsh. On the date of Akhil’s death, it was decided to value the goodwill of the firm on the basis of two years’ purchase of average super profit. The average net profit made by the firm is ₹49,000 per annum. The remuneration of the partners, considered as management cost, is estimated to be ₹9,000 per annum. The total value of assets and liabilities of the firm is ₹2,20,000 and ₹80,000 respectively. The normal rate of return in the industry is 15%.
You are required to calculate: (i) The gaining ratio of the continuing partners. (ii) The value of non-purchased goodwill of the firm.
,