Profits for the five years ending 31st March are as follows: Year 2019 – ₹ 4,00,000; Year 2020 – ₹ 3,98,000; Year 2021 – ₹ 4,50,000; Year 2022 – ₹ 4,45,000 and Year 2023 – ₹ 5,00,000. Calculate the goodwill of the firm on the basis of 4 Years’ purchase of 5 years’ average profit.
Profits for the five years ending 31st March are as follows:
Year 2019 – ₹ 4,00,000; Year 2020 – ₹ 3,98,000; Year 2021 – ₹ 4,50,000; Year 2022 – ₹ 4,45,000 and Year 2023 – ₹ 5,00,000.
Calculate the goodwill of the firm on the basis of 4 Years’ purchase of 5 years’ average profit.
Ans: Goodwill – ₹ 17,54,400.]
Anurag Pathak Changed status to publish April 17, 2023
