The profits of firm for the five years are as follows: Year 2012-13 2013-14 2014-15 2015-16...

 

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The profits of firm for the five years are as follows: Year 2012-13 2013-14 2014-15 2015-16 2016-17 Profit (Rs.) 20,000 24,000 30,000 25,000 18,000 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. The profits of firm for the five years are as follows: Year 2012-13 2013-14 2014-15 2015-16 2016-17 Profit (Rs.) 20,000 24,000 30,000 25,000 18,000 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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To calculate the value of goodwill based on three years purchase of weighted average profits well us... View the full answer