Calculate goodwill on the basis of …
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Calculate goodwill on the basis of 2 years purchase of last three years average profits :
Year ended 31st March 2010 Profits rs. 20,000 ( Including insurance claim received 40,000)
Year ended 31st March 2011 Losses rs. 80,000 ( Including voluntary retirement compensation paid 1,10,000)
Year ended 31st March 2012 Profits rs 1,05,000 ( Including a profit of 25,000 on sale of plant)
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