The goodwill of a firm was to be valued at two years’ purchase of the average profits of the last three years. The profits were as under :

2014 – 15 : Rs.  20,000 (including an abnormal gain of Rs.  5,000)

2015 – 16 : Rs.  40,000 (after charging an abnormal loss of Rs.  10,000)

2016 – 17 : Rs.  40,000

Calculate the amount of goodwill.

Marks-3, CBSE:2018-19/Main/05/Q-8

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