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Compute the value of goodwill on the basis of four years’ purchase of the average profits based on the last five years? 

The profits for the last five years were as follows:

YearAmt.Rs.
200240,000
200350,000
200460,000
200550,000
200660,000

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Good will = 52,000 x 4 = Rs. 2,08,000

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