Profits of a firm for the year ended 31st March for the last five years were:
Profits of a firm for the year ended 31st March for the last five years were:
| Year Ended | Profits (₹) |
| 31st March 2019 | 20,000 |
| 31st March 2020 | 24,000 |
| 31st March 2021 | 30,000 |
| 31st March 2022 | 25,000 |
| 31st March 2023 | 18,000 |
Calculate the 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 2019, 2020, 2021, 2022, and 2023.
[Ans.: Goodwill – ₹ 69,600.]
Anurag Pathak Changed status to publish April 17, 2023
