Super profit is (₹45000) and goodwill is valued at (2) years purchase. What is goodwill?

Correct answer: (₹90000)

The direct answer is option C: ₹90,000. Under the super-profit method, goodwill equals super profit multiplied by the number of years’ purchase. Here, super profit is ₹45,000 and the years’ purchase is 2. Therefore, goodwill = ₹45,000 × 2 = ₹90,000. The words “years’ purchase” mean how many years of that special profit are being valued today. Option C is correct because it exactly matches the calculation. Option A, ₹45,000, is only the super profit itself; it would be the answer if the question asked for one year’s super profit, not two years’ goodwill. Option B, ₹22,500, is obtained by dividing ₹45,000 by 2, but division is not used here because the given number is the multiplier of years. Option D, ₹47,000, has no valid basis in the stated data and appears to result from an incorrect addition of ₹2,000. Remember that this method uses super profit, not total or average profit. The quick exam rule is: goodwill under super-profit method = super profit × years’ purchase. Always write the units and multiply before selecting the option.