Question

A
Ans Goodwill 3,63,
0.5. Following information is available about the business of a firm:
(0) Profits : In 2016, 340,000; In 2017. 50,000; In 2018, 260,000, (ii) Non-
recurring income of 1,000 is included in the profits of 2017, (ii) Profits of 2016 have
been reduced by R6,000 because goods were destroyed by fire, (iv) Goods have not
been insured but it is thought to insure them in future. The insurance premium
estimated at 400 per year, (v) Reasonable remuneration of the proprietor of business
is 6,000 per year, but it has not been taken into account for calculation of above
mentioned profits, (vi) Profits of 2018 include 5.000 income on investment.
Goodwill is agreed to be valued at two years' purchase of the weighted average
profits of the past three years. The appropriate weights to be used are:-​

Answer 1

Answer:

noo Any Ideas in your question