InterviewSolution
Saved Bookmarks
| 1. |
Goodwill is to be valued at three years purchase of four years average profit. Profits for last four years ending on 31st March of the firm were: 2015 ₹ 12,000; 2016 ₹ 18,000; 2017 ₹ 16,000; 2018 ₹ 14,000. Calculate amount of Goodwill. |
| Answer» N:Goodwill = Average PROFIT x NUMBER of years PURCHASE Average Profit = = = 15, 000Number of Years purchase = 3 Goodwill = 15, 000 x 3 = 45, 000 | |