The profits earned by a firm during the last four years were as follows: Profits ₹ 80,000
The profits earned by a firm during the last four years were as follows:
Calculate the value of goodwill on the basis of three year’s purchase of weighted average profits. Weights to be used are 1, 2, 3 and 4 respectively to the profits for 2021, 2022, 2023 and 2024.
[Ans. Goodwill ₹ 3,63,000.]
| Year ended 31st March | Profits (₹) |
| 2021 | 80,000 |
| 2022 | 1,00,000 |
| 2023 | 1,10,000 |
| 2024 | 1,50,000 |
Anurag Pathak Answered question 3 days ago
