Question

1. A firm has a policy of valuing goodwill at 2 years
purchase of average profit of last three years.
From the following details estimate the goodwill
of the firm
Profit for the year 2006 Rs.20,000 which includes
an insurance claim of Rs. 40,000 received
Loss for the year 2007 Rs. 80,000 includes VRS
payment of Rs. 110,000
Profit for the year 2008 Rs. 105000 which includes
profit on sale of fixed assets Rs. 25,000
(a) Rs. 60,000
(6) Rs. 90,000
(C) Rs. 75,000
(d) Rs. 80,000​

Answer 1

Profit for the year 2008 Rs. 105000 which includes profit on sale of fixed assets Rs. 25,000

(a) Rs. 60,000

(6) Rs. 90,000

(C) Rs. 75,000

(d) Rs. 80,000

Correct option C) Rs. 75,000