CA Foundation Exam  >  CA Foundation Questions  >  The profits of last five years are Rs. 75,000... Start Learning for Free
The profits of last five years are Rs. 75,000, Rs. 90,000, Rs. 80,000, Rs. 1,00,000 and Rs. 80,000. Find the value of goodwill, if its calculated an 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?
Most Upvoted Answer
The profits of last five years are Rs. 75,000, Rs. 90,000, Rs. 80,000,...
Average profit=
(75000+90000+80000+100000+80000)÷5=105000.
Goodwill = 105000×3=315000.
Free Test
Community Answer
The profits of last five years are Rs. 75,000, Rs. 90,000, Rs. 80,000,...
1st year profit 75000
2nd year profit 90000
3rd year profit 380000
4th year profit 100000
5th year profit 80000
First,you have to calculate average profit of last five years. so we use average profit formula here
formula avg. profit=total profit/no.of years average profit =85000
now you have to calculate Goodwill
formula
goodwill = average profit × no. of purchased years
no. of purchased years =3
goodwill = 255000
Explore Courses for CA Foundation exam

Similar CA Foundation Doubts

The profits of last five years are Rs. 75,000, Rs. 90,000, Rs. 80,000, Rs. 1,00,000 and Rs. 80,000. Find the value of goodwill, if its calculated an average profits of last five years on the basis of 3 years of purchase:a)Rs. 85,000b)Rs. 2,55,000c)Rs. 2,75,000d)Rs. 2,85,000Correct answer is option 'B'. Can you explain this answer?
Question Description
The profits of last five years are Rs. 75,000, Rs. 90,000, Rs. 80,000, Rs. 1,00,000 and Rs. 80,000. Find the value of goodwill, if its calculated an average profits of last five years on the basis of 3 years of purchase:a)Rs. 85,000b)Rs. 2,55,000c)Rs. 2,75,000d)Rs. 2,85,000Correct 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. 75,000, Rs. 90,000, Rs. 80,000, Rs. 1,00,000 and Rs. 80,000. Find the value of goodwill, if its calculated an average profits of last five years on the basis of 3 years of purchase:a)Rs. 85,000b)Rs. 2,55,000c)Rs. 2,75,000d)Rs. 2,85,000Correct 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. 75,000, Rs. 90,000, Rs. 80,000, Rs. 1,00,000 and Rs. 80,000. Find the value of goodwill, if its calculated an average profits of last five years on the basis of 3 years of purchase:a)Rs. 85,000b)Rs. 2,55,000c)Rs. 2,75,000d)Rs. 2,85,000Correct answer is option 'B'. Can you explain this answer?.
Solutions for The profits of last five years are Rs. 75,000, Rs. 90,000, Rs. 80,000, Rs. 1,00,000 and Rs. 80,000. Find the value of goodwill, if its calculated an average profits of last five years on the basis of 3 years of purchase:a)Rs. 85,000b)Rs. 2,55,000c)Rs. 2,75,000d)Rs. 2,85,000Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of The profits of last five years are Rs. 75,000, Rs. 90,000, Rs. 80,000, Rs. 1,00,000 and Rs. 80,000. Find the value of goodwill, if its calculated an average profits of last five years on the basis of 3 years of purchase:a)Rs. 85,000b)Rs. 2,55,000c)Rs. 2,75,000d)Rs. 2,85,000Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of The profits of last five years are Rs. 75,000, Rs. 90,000, Rs. 80,000, Rs. 1,00,000 and Rs. 80,000. Find the value of goodwill, if its calculated an average profits of last five years on the basis of 3 years of purchase:a)Rs. 85,000b)Rs. 2,55,000c)Rs. 2,75,000d)Rs. 2,85,000Correct answer is option 'B'. Can you explain this answer?, a detailed solution for The profits of last five years are Rs. 75,000, Rs. 90,000, Rs. 80,000, Rs. 1,00,000 and Rs. 80,000. Find the value of goodwill, if its calculated an average profits of last five years on the basis of 3 years of purchase:a)Rs. 85,000b)Rs. 2,55,000c)Rs. 2,75,000d)Rs. 2,85,000Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of The profits of last five years are Rs. 75,000, Rs. 90,000, Rs. 80,000, Rs. 1,00,000 and Rs. 80,000. Find the value of goodwill, if its calculated an average profits of last five years on the basis of 3 years of purchase:a)Rs. 85,000b)Rs. 2,55,000c)Rs. 2,75,000d)Rs. 2,85,000Correct 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. 75,000, Rs. 90,000, Rs. 80,000, Rs. 1,00,000 and Rs. 80,000. Find the value of goodwill, if its calculated an average profits of last five years on the basis of 3 years of purchase:a)Rs. 85,000b)Rs. 2,55,000c)Rs. 2,75,000d)Rs. 2,85,000Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev