Profits for the five years ending 31st March are as follows:
Year 2022 – ₹ 4,00,000; Year 2023 – ₹ 3,98,000; Year 2024 – ₹ 4,50,000;
Year 2025 – ₹ 4,45,000 and Year 2026 – ₹ 5,00,000.
Calculate the goodwill of the firm on the basis of 4 Years’ purchase of 5 years’ average profit.
[Ans: Goodwill – ₹ 17,54,400.]
Worked as a lecturer , educator
I am a M. Com Gold Medalist from Osmania University in 1999. And a UGC NET Qualified in June 1999.
My passion and interest are in the areas of Accountancy & Financial Management. Over the last ~20 years, I have been teaching students (predominantly in Class XI, XII – All Boards and B. Com Students across Universities.