The profits of a firm for the last five years were as follows :
`{:("Year ended 31st March",,"Profits (Rs.)"),(2011,,"43,000"),(2012,,"50,000"),(2013,,"52,000"),(2014,,"65,000"),(2015,,"85,000"):}`
You are required to calculate the value of goodwill on the basis of two year's purchase of weighted average profits. The weights to be used are :
2011 - 1, 2012 - 2, 2013 - 3, 2014 - 4, 2015 - 5.

Explanation

`{:("Year ended","Profits","Weight","Products"),("31st March","(Rs.)",,),(2011,"43,000"," 1","43,000"),(2012,"50,000"," 2","1,00,000"),(2013,"52,000"," 3","1,56,000"),(2014,"65,000"," 4","2,60,000"),(2015,"85,000"," 5","4,25,000"),(,,bar ul(" 15"),bar ul("9,84,000")""):}`
Weighted Average Profit = `(9,84,000)/( 15)`= Rs. 65,600
Goodwill = Rs. 65,600 `xx` 2 = Rs. 1,31,200