Question

calculate the amount of goodwill in the following case : three years purchase of last four years average profit is agreed as the goodwill value. the profits and losses for the last four years are: | - Rs. 5000, || - Rs. 8000, ||| - Rs. 3000(loss) and |V - Rs. 6000​

Answer 1

Answer:

22000 rupees total brro

Answer 2

Given:

• The profits and losses for the last four years were Rs 5,000, Rs 8,000, Rs 3,000 (loss) and Rs 6,000.
• The goodwill is to be valued at 3 years' purchase of the average profit of the last 4 years.

To find: The value of goodwill.

Answer:

Average profit = Total profit ÷ Number of years

• Total profit = Rs 5,000 + Rs 8,000 + Rs 3,000 + Rs 6,000 - Rs 3,000 = Rs 19,000
• Number of years = 4

Average profit = Rs 19,000 ÷ 4

Average profit = Rs 4,750

Goodwill = Average profit × Number of years' purchase

Goodwill = Rs 4,750 × 3

Goodwill = Rs 14,250

Therefore, the value of goodwill is Rs 14,250