Question

calculate the amount of goodwill ?​

Answer 1

Answer:

Goodwill = average profit× number of year purchase

Average profit = 4800+7200+10000+3000+5000/5

= 30000/5=6000

Goodwill =6000×3=18000

Answer 2

★ Question :

Calculate the amount of Goodwill in the following cases :

(a). Three years' purchase of the last five years average profit

I year - ₹ 4,800

II year - ₹ 7,200

III year - ₹ 10,000

IV year - ₹ 3,000

V year - ₹ 5,000

Answer :

The total amount of Goodwill = ₹ 18,000

Explanation:

Given :

The Goodwill of forms should be valued on the basis of 3 year purchase

5 years average profit

Year ---- Profit

I ----- ₹ 4,800

II ---- ₹ 7,200

III ----- ₹ 10,000

IV ----- ₹ 3,000

V ------ ₹ 5,000

To find :

Calculate the total amount of Goodwill

Solution :

Goodwill = Average Profit × Number of year's Purchases

★ Average profit =

$\sf{\longrightarrow{\dfrac{Total \: Profit \: for \: past \: given \: years}{Number \: of \: years}}}$

$\sf{\longrightarrow{\dfrac{4,800 \: + \: 7,200\: + \: 10,000\: + \:3,000\: + \:5,000}{5}}}$

$\sf{\longrightarrow{\dfrac{30,000}{5} = 6,000}}$

Goodwill = Average Profit × Number of year's Purchases

Number of years Purchases = 3 years

Goodwill = 6,000 × 3

$\longrightarrow \: 18,000$

Therefore,

The total amount of Goodwill = ₹ 18,000