Profits of a firm for the year ended 31st March for the last five years were:
| Year Ended | Profits (₹) |
| 31st March 2022 | 20,000 |
| 31st March 2023 | 24,000 |
| 31st March 2024 | 30,000 |
| 31st March 2025 | 25,000 |
| 31st March 2026 | 18,000 |
Calculate the 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 2022, 2023, 2024, 2025 and 2026.
[Ans.: Goodwill – ₹ 69,600.]
Solution:-
