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Profits earned by ABC Ltd . for the preceding three years were: Year Profit s in Rs . 2 0 1 9 1 5 0
Profits earned by ABC Ltd for the preceding three years were: Year Profits in Rs
Profits of have been derived after adjusting Rs profit on sale of machinery.
Profits of were reduced by Rs due to an extraordinary loss on account of theft.
Profits of include Rs income on investment.
Salary of proprietor, not yet considered in calculation of profits is to be given Rs pa
The stock of raw material was not insured previously.
Now, it is decided to insure the stock of raw material. The insurance premium is estimated to be paid in future at Rspa You are required to calculate goodwill on the basis of three years purchase of average of last three years profits and on the basis of weighted average profit method weights respectively
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