Question

0.18. Anupma, Purnima and Ruchika are partners in a business. Balances in their Capital and Current Accounts as on 31st March, 2019 were :
Capital Account Current Account
Anupma 6,00,000 60,000 (Dr.)
Purnima 5,00,000 30,000 (Dr.)
Ruchika 5,00,000 10,000 (Cr.)
The firm earned an average profit of 2,40,000. If the normal rate of return is 12% find the value of goodwill by Capitalisation of Average Profit Method.
[Ans. Value of Goodwill 34,80,000]​

Answer 1

Answer:

c.v.=240000×100/12=2000000

Goodwill=2000000-1700000

300000