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Profits were 20,000; 24,000; 30,000; 25,000; 18,000 with weights 1 to 5. Goodwill at 3 years' purchase?
ARs. 70,200
BRs. 69,600
CRs. 75,000
DRs. 23,200
Answer & Solution
Correct answer: B. Rs. 69,600
Weighted profits total 3,48,000 over weights summing to 15 gives 23,200, and three years' purchase gives 69,600.
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