Question

profit of last 3 years when 9000 and 13000 and 8000 the value of goodwill at 2 years purchase of average profit will be​

Answer 1

Answer:

18000

Solution:

• Total profit = 6000 +13000 + 8000 = 27000.

• Average Profit = 27000/3 = 9000

• Goodwill = 9000 • 2 = 18000

Answer 2

The average profit will be ₹20000.

Explanation:

Given: Profit of last three years are 9000, 13000 and 8000

Asked: Value of goodwill at 2 years purchase of average profit.

Solution:

• Goodwill is the intangible asset of an organization, it shows the excess profit earned by the entity in comparison of other entities in the market because of its good name.

• Total profit= 9000+13000+8000 = 30000
• Average profit = 30000/3 = 10000

• Goodwill = 10000*2 = 20000

The average profit will be ₹20000 at 2 years purchase of average profit.