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:

The correct option/sequence is (C), (B), (A), (D).

To understand why this is the correct sequence, let us break down the calculation of goodwill under the Super Profit method step-by-step:

Step 1: Calculate the Average Profit (C)
First, we need to determine the actual profits earned by the firm. This is done by calculating the average profit (or adjusted average profit) over a given number of past years.

Step 2: Calculate the Normal Profit (B)
Next, we determine what normal profit a similar firm in the same industry would earn on the capital employed. The formula is:
$$\text{Normal Profit}=\text{Capital Employed}\times \frac{\text{Normal Rate of Return}}{100}$$

Step 3: Calculate the Super Profit (A)
Super profit is the excess of actual average profit over the normal profit. We find it by deducting the normal profit (from Step 2) from the average profit (from Step 1):
$$\text{Super Profit}=\text{Average Profit}-\text{Normal Profit}$$

Step 4: Calculate Goodwill (D)
Finally, Goodwill is valued by multiplying the super profits calculated in Step 3 by the specified number of years' purchase:
$$\text{Goodwill}=\text{Super Profit}\times \text{Number of Years' Purchase}$$

Therefore, logically arranging these steps gives us the sequence (C) → (B) → (A) → (D).