Calculate the value of goodwill as on 1.1.2007 on the basis of 3 years
purchases of the Average profits of the last 5 years profits. The profits
and losses for the years were- 2001- 30,000; 2002- 40,000 (loss); 2003-
92,000; 2004- 55000; 2005- 70000; 2006- 90000
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profit= 30000+(40000)+92000+55000+70000+90000= 287000
now,
no. of years purchase=3
Goodwill = average profit × no. of years purchase
Then ,
287000×3= 861000 is anwer
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