from the following information,compute the goodwill of firm.the net profit for 8 years are follows. 2006.rs2,000,2007.rs12,000,2008.rs20,000,2009.rs16,000,2010.rs25,000,2011.rs30,000,2012.rs36,000 and 2013.rs31,000 Good eill shall be calculated on the basic of 5 year's purchase of average net profit of last 8 years.
Answers
Answered by
1
Answer:
goodwill of the firm = ₹107500
Explanation:
average profits for the last 8 years=
(2000+12000+20000+16000+25000+30000+36000+31000)/8
=₹172000/8
=₹21500
goodwill = ₹21500 * 5 years of purchase =₹107500
Similar questions