Question

Good will of the firm valued at
two years Purchases of the average
profit of last four year the
Fotel profit for host tour year
g & 40.000 calculate the

Goodwill of the firm​

Answer 1

Given :

No. of Years of Purchase - 2 years

Average Profit of 4 Years - 40,000

To Find :

Goodwill Of Firm

Formula To Find Goodwill :

Goodwill = Average Profit × No.of Year's Of Purchased

Solution :

Goodwill = Average Profit × No.of Year's Of Purchase

= 40,000 × 2

= 80,000

Goodwill = 80,000

∴ Goodwill Of Firm = 80,000