Question

according to partnership deed goodwill of a firm is valued at two years purchase of the average profit at the last 3 years the profit of last three years were as follows 50,000 45,000 and 61000​

Answer 1

Answer:

Average profit = 50000+45000+61000/3= 156000/3= 52000

Goodwill = average profit* no. of year purchase

= 52000*2=104000