Profits for the five years ending on 31st March, are as follows:Year 2015 − ₹ 4,00,000; Year 2016 − ₹ 3,98,000; Year 2017 − ₹ 4,50,000; Year 2018 − ₹ 4,45,000 and Year 2019 − ₹ 5,00,000.Calculate goodwill of the firm on the basis of 4 years' purchase of 5 years' average profit.

Profits for the five years ending on 31st March, are as follows:Year 2

1.	Profits for the five years ending on 31st March, are as follows:Year 2015 − ₹ 4,00,000; Year 2016 − ₹ 3,98,000; Year 2017 − ₹ 4,50,000; Year 2018 − ₹ 4,45,000 and Year 2019 − ₹ 5,00,000.Calculate goodwill of the firm on the basis of 4 years' purchase of 5 years' average profit.
Answer» Profits for the five years ending on 31st March, are as follows: Year 2015 − ₹ 4,00,000; Year 2016 − ₹ 3,98,000; Year 2017 − ₹ 4,50,000; Year 2018 − ₹ 4,45,000 and Year 2019 − ₹ 5,00,000. Calculate goodwill of the firm on the basis of 4 years' purchase of 5 years' average profit.

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Profits for the five years ending on 31st March, are as follows:Year 2015 − ₹ 4,00,000; Year 2016 − ₹ 3,98,000; Year 2017 − ₹ 4,50,000; Year 2018 − ₹ 4,45,000 and Year 2019 − ₹ 5,00,000.Calculate goodwill of the firm on the basis of 4 years' purchase of 5 years' average profit.

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