Q11 Sumit purchased Amit 39 s business on 1st April 2019 Goodwill was decided to be valued at two ye...........

Q11.Sumit purchased Amit's business on 1st April, 2019. Goodwill was decided to be valued at two years' purchase of average normal profit of last four years. The profits for the past four years were:

Books of Account revealed that:

i Abnormal loss of 20,000 was debited to Profit and Loss Account for the year ended 31st March, 2016.

ii A fixed asset was sold in the year ended 31st March, 2017 and gain profit

of 25,000 was credited to Profit and Loss Account.

iii In the year ended 31st March, 2018 assets of the firm were not insured due to oversight. Insurance premium not paid was 15,000. Calculate the value of goodwill.