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Standard XII

Mathematics

Contra-Positive

Calculate the...

Question

Calculate the goodwill for 3 years of purchase on the average profit basis.
year
2014
2015
2016
2017
profit
50000
60000
80000
30000

R s .140000

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R s .150000

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R s .165000

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R s .175000

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Solution

The correct option is C $R s .165000$
Goodwill as per average profit method = average profit X No. of years purchases
Average Profit = sum of profits / no. of years
= $50000$ + $60000$ + $80000$ + $30000$ / $4$
= $R S .55000$
therefore,
Goodwill = $R s .55000$ x $3$ years of purchases = $R s .165000$

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Similar questions

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Q. The profit for the years ending on

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Calculate the goodwill for 3 years of purchase on the average profit basis.year2014201520162017profit50000600008000030000

The correct option is C Rs.165000Goodwill as per average profit method = average profit X No. of years purchasesAverage Profit = sum of profits / no. of years = 50000+60000+80000+30000 /4 = RS.55000therefore,Goodwill = Rs.55000 x 3 years of purchases = Rs.165000

Calculate the goodwill for 3 years of purchase on the average profit basis.
year
2014
2015
2016
2017
profit
50000
60000
80000
30000