Profit of a firm for previous years are as under (1) 40000 (2) 38000 (3) 45000 (4) 64000, profit of third year includes profit on sells of machinery amounting to Rs. 3000. It is expected that in future company will have to pay rent of Rs. 12000 instead of Rs. 8000 previously paid by the firm. Calculate the value of goodwill taking four years purchase of the average profit

Options :
  1. 184000
  2. 168000
  3. 164000
  4. 160000
Answer and Explanation :-

Answer: Option 2


Sorry there is no explanation for this answer. Please help others by posting your response below

How do you rate this queston?  Very Easy  Easy  Average  Above Average  Tough

Previous Question : If partner give loan to firm, so he receives interest

Next Question : Meaning of book keeping is

Click here for online test on Financial Accounting


 (Getemail alerts when others member replies)

More available Categories:-

At present we are on the outside of the world, the wrong side of the door. We discern the freshness and purity of morning, but they do not make us fresh and pure. We cannot mingle with the splendours we see. But all the leaves of the New Testament are rustling with the rumour that it will not always be so. Some day, God willing, we shall get in.
-C.S. Lewis The Weight of Glory