Accountancy

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Accountancy

The goodwill of a firm is estimated at three years purchase of the average profits of the last 5 years are as follows

Year profit

1999 10000

2000 15000

2001 5000

2002 5000loss

2003 8000

Accountancy

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Answer 1

Answer #1

Average profit=10000+15000+5000+8000-5000/5

=33000/5=6600

Goodwill=6600×3=19800

answered by: Advika

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Answer 2

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