Question

12. Geet and Meet are partners in a firm. They admit Jeet into partnership for equal share. It was agreed the
goodwill will be valued at three years' purchase of average profit of last five years. Profits for the last five
years were:
Year Ended 31st March, 2015 31st March, 2016 31st March, 2017 31st March, 2018 31st March, 2019
Profits (3) 90,000 (Loss)
1,60,000
1,50,000
65,000
1,77,000
Books of Account of the firm revealed that:
(1)_The firm had gain (profit) of 50,000 from sale of machinery sold in the year ended 31st March
2016. The gain (profit) was credited in Profit and Loss Account.
(ii) There was an abnormal loss of 20,000 incurred in the year ended 31st March, 2018 because of a
machine becoming obsolete in accident.
fim Overhauling cost of second hand machinery purchased on 1st July, 2017 amounting to
*1,00,000 was debited to Repairs Account. Depreciation is charged @ 20% p.a. on Written Down
Value Method.
Calculate the value of goodwill.
[Ans.: Value of Goodwill-3,00,000]
Weighted Average Profit Method​

Answer 1

Answer:

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Explanation:

because you have given the answer previously. so is no fun about doing the maths