Chapter 3 – Goodwill – TS Grewal 2022
Question 13
Profit of a firm for the year ended 31st March for the last five years were:
| Year Ended | 31st March, 2018 | 31st March, 2019 | 31st March, 2020 | 31st March, 2021 | 31st March, 2022 |
| Profits (₹) | 20,000 | 24,000 | 30,000 | 25,000 | 18,000 |
Calculate 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 2018, 2019, 2020, 2021 and 2022.
Solution:
Profit of a firm for the year ended
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