12th Class
Accountancy
Goodwill
Question Bank
MCQs - Goodwill : Nature And Valuation
question_answer
The goodwill of a firm is valued at 4 years' purchase of average profits of last five years. The profits of the last five years were : 2013 - 14 : 2,00,000, 2014 - 15 : 3,00,000, 2015 - 16 : 4,50,000 (including an abnormal gain of Rs.50,000) 2016 - 17 : 3,50,000 (after charging an abnormal loss of Rs.90,000) 2017 - 18 : 2,60,00. Goodwill of the firm will be: