The goodwill of a firm is valued at 4 year’s purchase of average profits of last five years. The profits of the last five years were:
The goodwill of a firm is valued at 4 year’s purchase of average profits of last five years. The profits of the last five years were:
| Year | Profit (₹) |
| 2018-19 | 2,00,000 |
| 2019-20 | (3,00,000) |
| 2020-21 | 4,50,000 (including an abnormal gain of ₹ 50,000) |
| 2021-22 | 3,50,000 (after charging an abnormal loss of ₹ 90,000) |
| 2022-23 | 2,60,000 |
Calculate the amount of goodwill
[Ans. Goodwill ₹ 8,00,000.]
Anurag Pathak Answered question June 27, 2024
