Question

a farm earn profit of 80,000, 100000, 120000 and 180000 during 2010-11, 2011-12, 2012-13 2013-14 unexpectedly the form has capital investment 500008 of interest on investment 15% per annum calculate Goodwill of form based on three year purchase over super profit of last four year​

Answer 1

Answer:

406,667

Explanation:

Expected Profit : 75,000 (5,00,000 * 0.15)

Average Profit : 136,000 ((80,000 * 1) + (100,000 * 2) + (120,000 * 3) + 180,000 *  4) / 10))

Super Profit : 61,000 (136,000 - 75,000)

Goodwill : 61,000 / 0.15