Question

2. Calculate the Value of Goodwill at two and a half year's purchase of the average profit of last 5 years
The firm earned profit during the first three years as * 30,000, 28,000 and 22,000 and suffered losses
of 12,000 and 8,000 during the last two years.
nt three years' nurchase of the average of the last three years' profit.
:11​

Answer 1

Answer:

sorry don't know. sorry sorry sorry

Answer 2

Average profits of 5 year= 20000 + 18000 +2000 +5000 +5000/5

= 10000

Calculation of Goodwill = 10000* 1.5

= 15000

Like this u can try to find out the answer