Calculate goodwill on the basis of two years’ purchase of average profit of the last four years. Profit/Loss of the last four years is given below:
• 2020: 1,00,000
• 2021: 1,50,000
• 2022: 2,20,000
• 2023: (70,000)
Additional information: Closing Stock of the year 2022 was overvalued by 20,000.