Question

Calculate the value of Goodwill as on 1st April, 2018 on the basis of
three years' purchase of the average profits of the last five years.
The profits and losses for the years were: 2013-14-(Loss) 80,000
(including Profit on sale or furniture during the year " 4,000),
2014-15 - 1,84,000,
2014-16- 100 000
(profit on sale of machinery
during the year 10.000)
2016-17- 1,50,000
2017-18 - 1,80,000
(including loss on sale of computer 10,000).​

Answer 1

Answer:

= 76000+184000+90000+150000+190000/5

= 690000/5

= 138000

= 138000×3

= 414000

Answer 2

Answer:

Calculate the value of Goodwill as on 1st April, 2018 on the basis of

three years' purchase of the average profits of the last five years.

The profits and losses for the years were: 2013-14-(Loss) 80,000

(including Profit on sale or furniture during the year " 4,000),

2014-15 - 1,84,000,

2014-16- 100 000

(profit on sale of machinery

during the year 10.000)

2016-17- 1,50,000

2017-18 - 1,80,000

(including loss on sale of computer 10,000).