Question

2. (Avg. Profit Method) Partner X is admitted in the firm of A and B for 1/5 share.
Calculate new partners share in goodwill on the basis of following information:
2011
Profit
30,000
2012
Profit
*50,000
2013 Loss
20,000
2014 Profit
40,000
2015
Profit
50,000
Goodwill is two times of the average profit of last five year.​

Answer 1

Answer:

X share of goodwill in new firm will be 12000