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Profits earned by the business during the last 5 years were : 2018 – ₹12,000 2019 – ₹13,000 2020 – ₹14,000 2021 – ₹18,000 2022 – ₹(2,000)
Question

Profits earned by the business during the last 5 years were :
2018 – ₹12,000
2019 – ₹13,000
2020 – ₹14,000
2021 – ₹18,000
2022 – ₹(2,000)
Calculate the amount of goodwill to be valued at 2 yeas purchase of average profits of last 5 years.

A.

₹24,000

B.

₹22,000

C.

₹55,000

D.

₹11,000

Correct option is B

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