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Goodwill is to be valued at three years'...

Goodwill is to be valued at three years' purchase of four years' average profit. Profits for last four years ending on 31st March of the firm were:
2016 - Rs. 12,000, 2017 - Rs. 18,000, 2018 - Rs. 16,000, 2019 - Rs. 14,000.
Calculate ammount of Goodwill.

Text Solution

Verified by Experts

The correct Answer is:
Goodwill - Rs. 45,000.
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