Question

5. (Avg. Profit Method) Goodwill is to be valued at two years purchase of 3 years normal
average profit of the firm. The profit for 2014-15, 20,000 (including insurance claim
received of * 40,000). The loss for 2015-16 8,000 (including voluntary retirement
compensation paid * 1,10,000). The profit for 2016-17 > 1,05,000 (including a profit of
25,000 on the sale of a fixed asset. Calculate the value of goodwill.
arn
Ans. 1,08,000]
6 lent​

Answer 1

Answer:

44,660

Explanation:

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