Goodwill is to be valued at three years’ purchase of four years’ average profit. Profits of the firm for the last four years ending 31st March were:
2021 – ₹ 12,000, 2022 – ₹ 18,000; 2023 – ₹ 16,000; 2024 – ₹ 14,000.
Calculate the amount of Goodwill
[Ans: Goodwill – ₹ 45,000]
Solution:-
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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.