Question

The average profit of last four years is 6000,5000,4000and3000 find the goodwill of the firm at the base of two year purchases​

Answer 1

Answer:

average profit= total no. of profit/total no. of year

Explanation:

6,000+5,000+4,000+3,000/4=4,500

valuation of g/w=4,500*no. of year purachase

                             4,500*2=9,000