Question

16. Goodwill of Indian Snacks, a partnership firm, is 10,00,000 calculated on 2.5 year's purchase of average profits of last years. What is the value of X? FY 2021 2020 2019 Profits 7,00,000 X 3,00,000 ​

Answer 1

Answer:

200,000

Explanation:

goodwill = average profits × no of year's purchase

1000000(given)= average profit × 2.5

average profit = 1000000÷2.5= 400000

average profits = total profits ÷ no of years

400000 = 700000 + x + 300000 ÷ 3

400000 = 1000000x ÷ 3

400000 × 3 -1000000 = 200000

x= 200000