The average profits of a firm is ₹ 98,000. The total assets of the firm are ₹ 10,00,000. Value of other…

The capitalised value of average profits is $\frac{₹\,98{,}000}{14\%} = ₹\,7{,}00{,}000$, and net assets (capital employed) equal $\text{Total Assets} - \text{Other Liabilities} = ₹\,10{,}00{,}000 - ₹\,5{,}00{,}000 = ₹\,5{,}00{,}000$. Therefore, $\text{Goodwill} = ₹\,7{,}00{,}000 - ₹\,5{,}00{,}000 = ₹\,2{,}00{,}000$.