5 Questions
What is the total profit of the firm for the five years ending 31st March?
₹ 21, 93, 000 (₹ 4, 00, 000 + ₹ 3, 98, 000 + ₹ 4, 50, 000 + ₹ 4, 45, 000 + ₹ 5, 00, 000)
What is the average profit of the firm for the five years?
₹ 4, 38, 600 (₹ 21, 93, 000 ÷ 5)
What is the goodwill of the firm on the basis of 4 Years' purchase of 5 years' average profit?
₹ 17, 54, 400 (₹ 4, 38, 600 x 4)
Who is the academic teacher mentioned in the passage?
Anurag Pathak
What is the medium through which Anurag Pathak provides free lectures?
YouTube channel and Android & ios app
Study Notes
Goodwill Calculation
- Given profits for five years ending 31st March: • 2019: ₹ 4, 00, 000 • 2020: ₹ 3, 98, 000 • 2021: ₹ 4, 50, 000 • 2022: ₹ 4, 45, 000 • 2023: ₹ 5, 00, 000
Goodwill Calculation Method
- 4 Years' purchase of 5 years' average profit is used to calculate the goodwill of the firm.
Anurag Pathak's Background
- Anurag Pathak is an academic teacher with 18 years of experience teaching Accountancy and Economics to CBSE students.
- Thousands of students have secured good marks in their board exams under his guidance.
- He has a YouTube channel and a free Android & iOS app for lectures.
This quiz is based on the Goodwill chapter 2 of the TS Grewal Book CBSE Board 2023-24 Edition. It involves calculating the goodwill of a firm using the 4 years' purchase of 5 years' average profit method.
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