Q39.Form the following particulars, calculate value of goodwill of a firm by applying Capitalisation of Average Profit Method:

i Profits of last five consecutive years ending 31st March are: 2019 − 54,000; 2018 − 42,000; 2017 − 39,000; 2016 − 67,000 and 2015 − 59,000.

ii Capitalisation rate 20%.

iii Net assets of the firm 2,00,000.