Calculate the value of goodwill at 2 year's purchase of the average profits of the last 3 years.
Channel: Doubtnut
Date: 2020-04-26

Calculate the value of goodwill at 2 year's purchase of the average profits of the last 3 years. The profit for the first year was Rs. 50,000, for second year twice the profit of first year and for the third year on and times the profit of the second year.