The profits of firm for the five years are as follows:
`{:(Year,Profit(Rs.)),(2012-13,20000),(2013-14,24000),(2014-15,30000),(2015-16,25000),(2016-17,18000):}`
Calculate the value of goodwill on the basis of three years’ purchase of weighted average profits based on weights 1,2,3,4 and 5 respectively.
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Answer: The goodwill based on three year of purchase will amount to Rs. 69,600.
Explanation: Refer the picture.
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