Question 6 Chapter 3 – Unimax Class 12 Part 1 – 2021

Question 6 Chapter 3 - Unimax Class 12 Part 1 - 2021

Question 6 Chapter 3 – Unimax Class 12 Part 1

6. The profits of a firm for the last five years were as follows :

Year 2017 2018 2019 2020 2021
Profit (Rs.) 20000 24000 30000 25000 18000

Calculate the value of goodwill as on 1.1.22 on the basis of three years’ purchase of the weighted average profits of last 5 years. Weights 1, 2, 3, 4 and 5 respectively have been given to the profits for the year 2017, 2018, 2019, 2020 and 2021.

The solution of Question 6 Chapter 3 – Unimax Class 12 Part 1:

  P W (Proudct)
Year Profits (Rs.) Weights PW
2002 20000 1 20000
2003 24000 2 48000
2004 30000 3 90000
2005 25000 4 100000
2006 18000 5 90000
    15 348000

Average Profits = 348000/15 = Rs. 23200
Goodwill = Rs. 23200 x 3 years
= Rs. 69600

 

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Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

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