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The profits of last five years are Rs. 85,000; Rs. 90,000; Rs. 70,000; Rs. 1,00,000 and Rs. 80,000. Find the value of goodwill, if it is calculated on average profits of last five years on the basis of 3 years of purchase.
- a)Rs. 85,000.
- b)Rs. 2,55,000.
- c)Rs. 2,75,000.
- d)Rs. 2,85,000.
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
The profits of last five years are Rs. 85,000; Rs. 90,000; Rs. ...
Calculation of goodwill :
1. Average profit = Total profit/ No. of years
Average profit = Rs. (85000 + 90000 + 70000 + 100000 + 80000)/ 3
Average profit = Rs. 425000/ 5
Average profit = Rs. 85000
2. Goodwill = Average profit * No. of years purchase
Goodwill = Rs. 85000 * 3
Goodwill = Rs. 255000
Most Upvoted Answer
The profits of last five years are Rs. 85,000; Rs. 90,000; Rs. ...
Last five years profit =80,000+90,000+70,000+80,000+1,00,000/5. =4,20,000/5=85,000. 3 year purchase =85,000 multiple 3=2,55,000
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The profits of last five years are Rs. 85,000; Rs. 90,000; Rs. ...
Calculation of Goodwill:
- Average Profit = (85000 + 90000 + 70000 + 100000 + 80000) / 5
- Average Profit = 90000
Goodwill Calculation based on 3 years purchase:
- Goodwill = Average Profit x Number of Years of Purchase
- Goodwill = 90000 x 3
- Goodwill = Rs. 2,70,000
Therefore, the value of goodwill, if it is calculated on the average profits of the last five years based on 3 years of purchase, would be Rs. 2,70,000. Hence, the correct answer is option 'B' - Rs. 2,55,000.
- Average Profit = (85000 + 90000 + 70000 + 100000 + 80000) / 5
- Average Profit = 90000
Goodwill Calculation based on 3 years purchase:
- Goodwill = Average Profit x Number of Years of Purchase
- Goodwill = 90000 x 3
- Goodwill = Rs. 2,70,000
Therefore, the value of goodwill, if it is calculated on the average profits of the last five years based on 3 years of purchase, would be Rs. 2,70,000. Hence, the correct answer is option 'B' - Rs. 2,55,000.
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The profits of last five years are Rs. 85,000; Rs. 90,000; Rs. 70,000; Rs. 1,00,000 and Rs. 80,000. Find the value of goodwill, if it is calculated on average profits of last five years on the basis of 3 years of purchase.a)Rs. 85,000.b)Rs. 2,55,000.c)Rs. 2,75,000.d)Rs. 2,85,000.Correct answer is option 'B'. Can you explain this answer?
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The profits of last five years are Rs. 85,000; Rs. 90,000; Rs. 70,000; Rs. 1,00,000 and Rs. 80,000. Find the value of goodwill, if it is calculated on average profits of last five years on the basis of 3 years of purchase.a)Rs. 85,000.b)Rs. 2,55,000.c)Rs. 2,75,000.d)Rs. 2,85,000.Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The profits of last five years are Rs. 85,000; Rs. 90,000; Rs. 70,000; Rs. 1,00,000 and Rs. 80,000. Find the value of goodwill, if it is calculated on average profits of last five years on the basis of 3 years of purchase.a)Rs. 85,000.b)Rs. 2,55,000.c)Rs. 2,75,000.d)Rs. 2,85,000.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The profits of last five years are Rs. 85,000; Rs. 90,000; Rs. 70,000; Rs. 1,00,000 and Rs. 80,000. Find the value of goodwill, if it is calculated on average profits of last five years on the basis of 3 years of purchase.a)Rs. 85,000.b)Rs. 2,55,000.c)Rs. 2,75,000.d)Rs. 2,85,000.Correct answer is option 'B'. Can you explain this answer?.
The profits of last five years are Rs. 85,000; Rs. 90,000; Rs. 70,000; Rs. 1,00,000 and Rs. 80,000. Find the value of goodwill, if it is calculated on average profits of last five years on the basis of 3 years of purchase.a)Rs. 85,000.b)Rs. 2,55,000.c)Rs. 2,75,000.d)Rs. 2,85,000.Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The profits of last five years are Rs. 85,000; Rs. 90,000; Rs. 70,000; Rs. 1,00,000 and Rs. 80,000. Find the value of goodwill, if it is calculated on average profits of last five years on the basis of 3 years of purchase.a)Rs. 85,000.b)Rs. 2,55,000.c)Rs. 2,75,000.d)Rs. 2,85,000.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The profits of last five years are Rs. 85,000; Rs. 90,000; Rs. 70,000; Rs. 1,00,000 and Rs. 80,000. Find the value of goodwill, if it is calculated on average profits of last five years on the basis of 3 years of purchase.a)Rs. 85,000.b)Rs. 2,55,000.c)Rs. 2,75,000.d)Rs. 2,85,000.Correct answer is option 'B'. Can you explain this answer?.
Solutions for The profits of last five years are Rs. 85,000; Rs. 90,000; Rs. 70,000; Rs. 1,00,000 and Rs. 80,000. Find the value of goodwill, if it is calculated on average profits of last five years on the basis of 3 years of purchase.a)Rs. 85,000.b)Rs. 2,55,000.c)Rs. 2,75,000.d)Rs. 2,85,000.Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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The profits of last five years are Rs. 85,000; Rs. 90,000; Rs. 70,000; Rs. 1,00,000 and Rs. 80,000. Find the value of goodwill, if it is calculated on average profits of last five years on the basis of 3 years of purchase.a)Rs. 85,000.b)Rs. 2,55,000.c)Rs. 2,75,000.d)Rs. 2,85,000.Correct answer is option 'B'. Can you explain this answer?, a detailed solution for The profits of last five years are Rs. 85,000; Rs. 90,000; Rs. 70,000; Rs. 1,00,000 and Rs. 80,000. Find the value of goodwill, if it is calculated on average profits of last five years on the basis of 3 years of purchase.a)Rs. 85,000.b)Rs. 2,55,000.c)Rs. 2,75,000.d)Rs. 2,85,000.Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of The profits of last five years are Rs. 85,000; Rs. 90,000; Rs. 70,000; Rs. 1,00,000 and Rs. 80,000. Find the value of goodwill, if it is calculated on average profits of last five years on the basis of 3 years of purchase.a)Rs. 85,000.b)Rs. 2,55,000.c)Rs. 2,75,000.d)Rs. 2,85,000.Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice The profits of last five years are Rs. 85,000; Rs. 90,000; Rs. 70,000; Rs. 1,00,000 and Rs. 80,000. Find the value of goodwill, if it is calculated on average profits of last five years on the basis of 3 years of purchase.a)Rs. 85,000.b)Rs. 2,55,000.c)Rs. 2,75,000.d)Rs. 2,85,000.Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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