0

Following were the profits of the firm for the last 3 years:

Year Profit (₹)
2020 – 21 3,00,000 (including abnormal gain of ₹ 90,000)
2021 – 22 2,40,000 (after charging abnormal loss of ₹ 1,20,000)
2022 – 23 3,60,000 (excluding ₹ 1,20,000 payable on the insurance of machinery)

Goodwill of the firm on the basis of 4 year’s purchase of the average profit for the last 3 years will be

a) ₹ 12,00,000

b) ₹ 10,80,000

c) ₹ 12,80,000

d) ₹ None of these

Anurag Pathak Changed status to publish April 16, 2023