4. Total weighted profit of last five year of a firm is Rs.2,70,000, w

1.	4. Total weighted profit of last five year of a firm is Rs.2,70,000, what is the value of goodwill onthe basis of weighted average profit of last 3 years ?[a] 1,62,000[b] 54,000[c] 22,500[d] None of the given
Answer» Question :- To FIND VALUE of goodwill. Answer :- Weighted Average profit method - • ) Product - profit× weight • ) weighted average profit - $\sf\frac{total \: product}{total \: weight}$ • ) valuation of goodwill- weighred average profit × agreed no. of years $\sf : \implies \: total \: weighted \: profit \: of \: last \: 5 \: years = 270000$ $\sf : \implies \: no. \: of \: years \: purchased \: = 3$ $\sf : \implies \:total \: weight = 1 + 2 + 3 + 4 + 5 = 15$ $\sf : \implies \: weighted \: avg. \: profit = \frac{270000}{15} = 18000$ $\sf : \implies \: valuation \: of \: goodwill = 18000 \times 3 = 54000$ $\bold\blue{valuation \: of \: goodwill = 54000}$ option B) is the answer.