The steps involved in calculation of Goodwill under Super Profit method are:

(A) Calculate the super profits by deducting normal profit from the average profits.

(B) Calculate the normal profit on the firm's capital on the basis of the normal rate of return.

(C) Calculate the average profit.

(D) Calculate goodwill by multiplying the super profits by the given number of years' purchase.

Choose the correct sequence of steps from the options given below:

Under the Super Profit method, Goodwill calculation follows a logical sequence:

Step 1: Calculate Average Profit (C)

The average profit of the firm must be determined first as it represents the actual earning capacity based on past performance.

Step 2: Calculate Normal Profit (B)

Normal profit is computed by applying the normal rate of return to the capital employed in the business. This represents what the firm should ideally earn under normal circumstances.

Formula: Normal Profit = Capital Employed × Normal Rate of Return ÷ 100

Step 3: Calculate Super Profit (A)

Super profit is the excess earning over normal profit. It can only be calculated after knowing both average profit and normal profit.

Formula: Super Profit = Average Profit - Normal Profit

Step 4: Calculate Goodwill (D)

Finally, goodwill is computed by multiplying the super profit with the given number of years' purchase.

Formula: Goodwill = Super Profit × Number of Years' Purchase

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The logical flow is: we first determine what the firm actually earns (average profit), then what it should normally earn (normal profit), then find the excess (super profit), and finally capitalize this excess to find goodwill.

Correct Sequence: (C), (B), (A), (D)