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a firm's profit for the last 3 years is rs 500000 rs 400000 and rs 600000. calculate value of the firm's goodwill on the basis of four years purchase of the avg profit for the llast 3 years

Posted by Harsh Joshi 5 years, 11 months ago

CBSE > Class 12 > Accountancy

4 answers

Vinesh Raj 5 years, 11 months ago

500000+400000+600000÷3 =500000avrag profit 4 year of av profit 4×500000=2000000

Nikunj Goel 5 years, 11 months ago

5L+4L+6L÷3= 5L G/W = 5L × 4 = 20L

Chanchal Kaushik 5 years, 11 months ago

500000+400000+600000=1500000÷3 =500000×4 = 2000000 Yeh hona chahiyeh....

M Soni 5 years, 11 months ago

Step 1- calculation of Average profit Av profit= 500000+400000+600000 / 2 =1500000/2 =750000 Step 2- calculation of goodwill Gw= average profit × number of purchase year Gw=750000×4 =3000000

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