Question

Q4.Goodwill is to be calculated at 2 years purchase of the average normal profit of

past 3 years.

2015-Profit Rs 60,000 including profit on sale of assets Rs 5,000.

2016-Loss Rs 20,000 including loss by fire Rs 30,000

2017-Profit Rs 70,000 (insurance premium not paid Rs 15,000)​

Answer 1

60000 -5000+20000+70000-15000=

90000/3= 30000

30000*2=60000