The profit of the last three years are ₹ 42,000, ₹ 39,000 and ₹ 45,000. Value of goodwill at two years purchases of the average profits will be :
A. ₹ 42,000
B. ₹ 84,000
C. ₹ 1,26,000
D. ₹ 36,000
Answer:B
The profit of the last three years are ₹ 42,000, ₹ 39,000 and ₹ 45,000. Value of goodwill at two years purchases of the average profits will be :
A. ₹ 42,000 B. ₹ 84,000 C. ₹ 1,26,000 D. ₹ 36,000