Q7 Divya purchased Jyoti 39 s business with effect from 1st April 2019 Profits shown by Jyoti 39 s b......

Q7.Divya purchased Jyoti's business with effect from 1st April, 2019. Profits shown by Jyoti's business for the last three financial years were:

2016-17 : 1,00,000 includinganabnormalgainof 12, 500

.

2017-18 : 1,25,000 aftercharginganabnormallossof 25, 000

.

2018-19 : 1,12,500 excluding 12, 500asinsurancepremiumonfirm′sproperty − nowtobeinsured

.

Calculate the value of firm's goodwill on the basis of two year's purchase of the average profit of the last three years.

By: Aman