Question

goodwill of a firm is valued at the year purchase less 10% of the average profit of last five years the results of last five years are as under 1year 3000 profit 2nd year 3.30 profit 3 d year 3.700 profit 4th year 3.400 loss 5 year 5.400 profit​

Answer 1

Explanation:

Your answer is 2160

Explanation:

Average

profit=3000+3300+3700-3400+5400/5

=12000/5

= 2400

Average profit=2400

Now,

We valued Goodwill at less 10% of average profit

SO

2400×10%

240

2400-240

=2160

So the Goodwill of the firm is 2160

Vol 59

V

Hope it helps you