Goodwill is to be calculated at one and half year purchase of average profit of last 5 years the firm earned profit during three year as 20000 ,18000 and 9000 suffered losses of 2000 and 5000 in last 2 year the amount of goodwill will be
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Explanation:
Average profits of 5 year= 20000 + 18000 +2000 +5000 +5000/5 = 10000
Calculation of Goodwill = 10000 x 1.5= 15000
MdShahnawaz10204:
wo wrong h
main sahi kr ke dikhata hu
20000+18000+9000+2000+5000/5=1800 average =1800÷1.5 = 12000
20000+18000+9000+2000+5000/5=1800 average =1800÷1.5 = 12000
20000+18000+9000+2000+5000/5=1800 average =1800÷1.5 = 12000
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