Calculate the value of goodwill by …
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Calculate the value of goodwill by super profit method, when goodwill is to be valued at 2.5
years purchase of the average profit of the last 3 years.
Profit of the previous 5 years are given below:
2019- Rs. 60,000; 2018- Rs. 40,000; 2017- Rs. 1,10,000; 2016- Rs. 40,000; 2015- Rs. 30,000
Capital investment of the firm is Rs. 1,00,000 and having rate of return is 20%.
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