CUET UG 2025 — Accountancy Partnership

To find goodwill based on weighted average profits, we need to assign weights to each year's profit and calculate the weighted average.

Assigning weights: The most recent year gets the highest weight (5) and the oldest year gets the lowest weight (1).

Year	Profit (Rs.)	Weight	Weighted Profit (Rs.)
2012-13	20,000	1	20,000
2013-14	24,000	2	48,000
2014-15	30,000	3	90,000
2015-16	25,000	4	1,00,000
2016-17	18,000	5	90,000
Total		15	3,48,000

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Weighted Average Profit Formula:

$$\text{Weighted Average Profit} = \frac{\text{Sum of Weighted Profits}}{\text{Sum of Weights}}$$Weighted Average Profit=Sum of WeightsSum of Weighted Profits​

$$\text{Weighted Average Profit} = \frac{3,48,000}{15} = 23,200$$Weighted Average Profit=153,48,000​=23,200

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Goodwill Calculation:

$$\text{Goodwill} = \text{Weighted Average Profit} \times \text{Number of years' purchase}$$Goodwill=Weighted Average Profit×Number of years’ purchase

$$\text{Goodwill} = 23,200 \times 3 = 69,600$$Goodwill=23,200×3=69,600

Therefore, Goodwill = Rs. 69,600