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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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