Under weighted average profit method, usually more weightage is assigned to ___

None of the above

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Number of years of purchase

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Past years`profits

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Recent years` profits

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Solution

The correct option is D
Recent years` profits

Usually more weightage is assigned to recent years` profits

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Similar questions

Q. Under average profits method, goodwill is valued at agreed number of ________ purchase of the average profits of the past few years.

Q. Under ___________ method Goodwill is valued at the agreed number of years purchase of the average profits of the past few years.

The profits of a firm for the year ended 31st March for the last 2 years were as under :

2017 - Rs. 12,000

2018 - Rs.14,400

What would be the value of goodwill on the basis of 3 years purchase of the weighted average profits of the last two years, assuming weight of 1 and 2 are assigned to 2017 and 2018 respectively ?

Q. Profits of a firm for the year ended 31st March for the last five years were:

Year Ended	31st March, 2015	31st March, 2016	31st March, 2017	31st March, 2018	31st March, 2019
Profits (₹)	20,000	24,000	30,000	25,000	18,000

Calculate value of goodwill on the basis of three years' purchase of Weighted Average Profit after assigning weights 1, 2, 3, 4 and 5 respectively to the profits for years ended 31st March, 2015, 2016, 2017, 2018 and 2019.

Q. If normal profit is

R s .50000

, average profit is

R s .75000

than calculate Goodwill for

2

years of purchase under super profit method_______.

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Under weighted average profit method, usually more weightage is assigned to ___

The correct option is D Recent years` profits Usually more weightage is assigned to recent years` profits

The correct option is D
Recent years` profits

Usually more weightage is assigned to recent years` profits