5 The profits of last five years are Rs.85, 000, Rs.90, 000; Rs.70,000; Rs.1,00,000 and Rs.80,000....

 

Transcribed Image Text:

5 The profits of last five years are Rs.85, 000, Rs.90, 000; Rs.70,000; Rs.1,00,000 and Rs.80,000. Find the value of goodwill, if it is calculated on average profits of last five years on the basis of 3 years of purchase. A B C D Rs.85,000 Rs.2, 55,000 Rs.2, 75,000 Rs, 2, 85,000 5 The profits of last five years are Rs.85, 000, Rs.90, 000; Rs.70,000; Rs.1,00,000 and Rs.80,000. Find the value of goodwill, if it is calculated on average profits of last five years on the basis of 3 years of purchase. A B C D Rs.85,000 Rs.2, 55,000 Rs.2, 75,000 Rs, 2, 85,000

Answer rating: 100% (QA)

Correct option is B Calculation of goodwill 1 Average profit Total profit No of years A... View the full answer