Q18: A purchased B business points
with effect from 1st April
2020. Profits shown by B
business for the last three
financial years ended 31st
March, were: 2018:Rs.
100.000 (including an
abnormal gain of Rs. 12,500).
2019 : Rs. 125.000 (after
charging an abnormal loss of
R$ 25,000). 2020: Rs. 1.12,500
(excluding Rs. 12,500 as
insurance premium on firm's
property--now to be insured.
Calculate the value of firm's
goodwill on the basis of two
years' purchase of the average
profit of the last three years.
02.00000
290.000
0 2.25.000
0 255.000
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