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Goodwill Is to Be Calculated at One and Half Year

Question 19

Multiple Choice

Goodwill is to be calculated at one and half year' purchase of average profit of last 5years. The firm earned profits during 3 years as ? 20,000 ? 18,000 and ? 9,000 and sufferedlosses of ? 2,000 and ?5,000 in last 2 years. The amount of goodwill will be


A) Rs 12000
B) Rs 10000
C) Rs 15000
D) None of the Above

Correct Answer:

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