Profits of a firm for the year ended 31st March for the last five years were:

Question 1

Calculate 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, 2014, 2015, 2016, 2017 and 2018.

Question 2

Goodwill = Weighte Average profit x Number of years'* purchase

= 23,200 x 3 = Rs.69,600

kratos · Answer 1 · 2020-05-12T23:24:35+0000

Goodwill = Weighte Average profit x Number of years'* purchase

= 23,200 x 3 = Rs.69,600

Profits of a firm for the year ended 31st March for the last five years were:

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Profits of a firm for the year ended 31st March for the last five years were:

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