The profits of a firm for the year ended 31st March for the last five

1.	The profits of a firm for the year ended 31st March for the last five years were as follows: YearProfit (in Rs)199920,000200024,000200130,000200225,000200318,000 Calculate the value of goodwill on the basis of 3 year's purchase of weighted average profit after weights 1,2,3,4 and 5 respectively.
Answer» The profits of a firm for the year ended $31^{s t}$ March for the last five years were as follows: $\begin{matrix} Year & Profit (in Rs) 1999 & 20, 000 2000 & 24, 000 2001 & 30, 000 2002 & 25, 000 2003 & 18, 000 \end{matrix}$ Calculate the value of goodwill on the basis of $3$ year's purchase of weighted average profit after weights $1, 2, 3, 4$ and $5$ respectively.

The profits of a firm for the year ended 31st March for the last five years were as follows: YearProfit (in Rs)199920,000200024,000200130,000200225,000200318,000 Calculate the value of goodwill on the basis of 3 year's purchase of weighted average profit after weights 1,2,3,4 and 5 respectively.

Answer»

The profits of a firm for the year ended $31^{s t}$ March for the last five years were as follows:

$\begin{matrix} Year & Profit (in Rs) 1999 & 20, 000 2000 & 24, 000 2001 & 30, 000 2002 & 25, 000 2003 & 18, 000 \end{matrix}$

Calculate the value of goodwill on the basis of $3$ year's purchase of weighted average profit after weights $1, 2, 3, 4$ and $5$ respectively.