Q. Goodwill is to be calculated at one and half year’ purchase of average profit of last 5
years. The firm earned profits during 3 years as ₹ 20,000 ₹ 18,000 and ₹ 9,000 and suffered
losses of ₹ 2,000 and ₹5,000 in last 2 years. The amount of goodwill will be