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Profits of a firm for the year ended 31st March for the last five years were: Year ended 31st March, 2014 31st March, 2015 31st March, 2016 31st March, 2017 31st March, 2018 Profit (₹) 20,000 24,000 30,000 25,000 18,000 Calculate value of goodwill on the basis of three years' purchase of Weighted Average Profit after assigning weights 1, 2, 3, 4 and 5 respectively to the profits for years ended 31st March, 2014, 2015, 2016, 2017 and 2018.

Answer» Profits of a firm for the year ended 31st March for the last five years were:



















Year ended 31st March, 2014 31st March, 2015 31st March, 2016 31st March, 2017 31st March, 2018
Profit (₹) 20,000 24,000 30,000 25,000 18,000

Calculate value of goodwill on the basis of three years' purchase of Weighted Average Profit after assigning weights 1, 2, 3, 4 and 5 respectively to the profits for years ended 31st March, 2014, 2015, 2016, 2017 and 2018.


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