Question

4. (Avg. Profit Method) Rani Purchased Vani's business on 31st March 2015. The profit
disclosed by Vani business for the last three years were as follows.
Year
2013 7 40,000 (including an abnormal gain * 5,000)
2014 * 50,000 (After charging an abnormal loss of * 10,000)
2015 * 45,000 (Excluding 5,000 as insurance Premium of firms property now to be insured)
Calculate the value of firm's goodwill on the basis of 2 years purchase of the average profit
for the last three years.​

Answer 1

The profit disclosed by Vani business for the last three years were ... Year 2013 7 40,000 (including an abnormal gain * 5,000) 2014