Question 39 of 45
Q.
From the following information, calculate the value of Goodwill on the basis of 3 years purchase of average profits of last four years.
| Year | Result | Amount |
|---|---|---|
| 2020 | Profit | 5,000 |
| 2021 | Profit | 8,000 |
| 2022 | Profit | 6,000 |
| 2023 | Loss | 3,000 |
Tamil Nadu DgeTamil Nadu HSC (DGE) Commerce Board 2025Subjective· 3mImportance★★★★★
87% · 39/45 Questions
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Start your 14-day free trial to unlock the full solution →Total profit of the four years is ₹16,000 (after deducting the 2023 loss), average = ₹4,000, and goodwill at 3 years' purchase = ₹12,000.
Step 1 – Total profit of the last four years
| Year | Result | Amount ₹ |
|---|---|---|
| 2020 | Profit | 5,000 |
| 2021 | Profit | 8,000 |
| 2022 | Profit | 6,000 |
| 2023 | Loss | (3,000) |
| Total | 16,000 | |
| … |
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