Accountancy, asked by lavinchoudhary198, 2 months ago

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​

Answers

Answered by diasingh70
0

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

Similar questions