Goodwill is valued as two years purchase of the average profits of three previous years are Rs. 15000, the value of goodwill be:

Name: Goodwill is valued as two years purchase of the average profits of three previous years are Rs. 15000, the value of goodwill be:
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Question

Quizplus · Accepted Answer

The value of goodwill is calculated as two years' purchase of the average profits of the last three years. Given the average profits are Rs. 15,000, the goodwill value is 2 * 15,000 = Rs. 30,000.

Goodwill Is Valued as Two Years Purchase of the Average