The Profit for the five years of a firm are as follows ₹4,00,000, ₹3,98,000, ₹4,50,000, ₹4,45,000 and ₹5,00,000. Calculate goodwill of the firm on the basis of 4 years purchase of 5 years average profit.

₹17,54,400

Total profit of 5 year =  ₹4,00,000 + ₹3,98,000 + ₹4,50,000 + ₹4,45,000 + ₹5,00,000
                                 = 2193000 
AVERAGE PROFIT = Total profits/No of years
                           = 2193000/5
                           = 438600
Goodwill = Average profit x No of years purchase
              = 438600 x 4
              = ₹1754400