Question

0. 9. Calculate the val
the value of goodwill on the basis of three year's purchase of the
profits of the last five years. Profits to be weighted 1, 2, 3, 4 and 5,
sightage to be given to last year. Profits of the last five years were :
wrighted avera
greatest weightag
Year ended
31st March, 2
March, 2015: Profit 80.000
2016: Profit 1,05,000 (after considering abnormal loss

2017: Loss
of 41,500)
20,000
(after considering abnormal gain
of 40,000)
2018: Profit 1,80,000
2019: Profit 2,00,000
Books of Accounts of the firm revealed that :
Closing Stock as on 31st March, 2015 was overvalued by 340,000.
in Repairs to Machinery 60,000 were wrongly debited to Machinery Account
on 1st July, 2017. Depreciation was charged on Machinery @ 20% p.a. on
diminishing balance method.
Ans. Value of Goodwill 33,60,000.]
Hint : Weighted Profit for the year ended 31st March 2018 35,16,000 and 2019
10,51,000.
​

Answer 1

Answer:

value of goodwill 33.60,000.]

hint: weighted profit for the year ended 31st March 2018 3516,000 and 2019 10,51,000.