Number of years of purchase refers to the number of years the firm will be able to earn _____ in future.

None of the above

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Number of years of purchase

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Average profits

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Goodwill

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Solution

The correct option is B
Number of years of purchase

Number of years of purchase refers to the number of years the firm will be able to earn the profits in future.

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Similar questions

Q. Goodwill is to be calculated at one and a half years purchase of average profit for the last 5 years. The firm earned the profit during the first 3 years as, Rs. 20,000 , Rs. 18,000 and 2,000 and 5,000 in last 2 years, goodwill amount will be:

A partnership firm earned net profits during the last 3 years as follows:

2007 - Rs. 1,90,000

2008 - Rs. 2,20,000

2009 - Rs. 2,50,000

Calculate the value of goodwill on the basis of 2 years’ purchase of average profits basis during the above mentioned 3 years.

Q. A partnership firm earned net profits during the last 3 years as follows:
2019 - ₹ 1,90,000
2020 - ₹ 2,20,000
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Calculate the value of goodwill on the basis of 2 year's purchase of average profits during the above mentioned years.

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The profits of a firm for the last two years are Rs. 45,000 and Rs.30,000. What would be the value of goodwill on the basis of 1 years purchase of the weighted average profits ?

Q. Goodwill is to be valued at three years' purchase of four years' average profit. Profits for last four years ending on 31st March of the firm were:
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Calculate amount of Goodwill.

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Number of years of purchase refers to the number of years the firm will be able to earn _____ in future.

The correct option is B Number of years of purchase Number of years of purchase refers to the number of years the firm will be able to earn the profits in future.

The correct option is B
Number of years of purchase

Number of years of purchase refers to the number of years the firm will be able to earn the profits in future.