CameraIcon
CameraIcon
SearchIcon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

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

year
2014
2015
2016
2017
profit
50000
60000
80000
30000

A
Rs.140000
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
Rs.150000
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
Rs.165000
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
D
Rs.175000
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is C Rs.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
= RS.55000
therefore,
Goodwill = Rs.55000 x 3 years of purchases = Rs.165000

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Questions
MATHEMATICS
Watch in App
Join BYJU'S Learning Program
CrossIcon