Question

Goodwill is to be calculated at one and half years’ purchase of average profit of last 5 years. The firm earned profits during 3 years as ₹ 20,000 ₹ 18,000 and ₹ 9,000 and suffered losses of ₹ 2,000 and ₹ 5,000 in the last 2 years. The amount of goodwill will be:

Options

• ₹ 12,000

• ₹ 10,000

• ₹ 15,000

• None of these

Answer 1

₹ 12,000