Calculate the amount of goodwill on the basis of three years purchase of the last five years

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Calculate the amount of goodwill on the basis of three years’ purchase of the last five years’ average profits. The profits for the last five years are:

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Corporate Accounting

ISBN: 9789353160739

1st Edition

Authors: Anita Raman, P. Radhika

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Question Posted: Sep 01, 2023 11:46 PM

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Calculate the amount of goodwill on the basis of three years purchase of the last five years

Question:

Year Year I Year II Year III Year IV Year V Amount (in) 9,600 14,400 20,000 6,000 10,000

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Value of Goodwill Average Profits X Number of Years Purcha...View the full answer

Corporate Accounting

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