Question

32. (Weighted Average Profits Method) A and B are partners sharing profits and losses in 4 : 3 ratio and for the last four years they have been entitled to annual salaries of 90,000 and + 1,50,000 respectively. Following were the profits before charging salaries—2014–3,52,360; 2015— *2,20,000; 2016— 4,20,000. On 1st April 2016, C is admitted for 2/9th share. The godwill is to be valued at 4 year's purchase of last three years' (after allowing salaries), profits to be weighted 1: 2: 3. The greatest weight being given to last year. Calculate the value of goodwill​

Answer 1

Answer:

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Answer 2

Answer:

32. (Weighted Average Profits Method) A and B are partners sharing profits and losses in 4 : 3 ratio and for the last four years they have been entitled to annual salaries of 90,000 and + 1,50,000 respectively. Following were the profits before charging salaries—2014–3,52,360; 2015— *2,20,000; 2016— 4,20,000. On 1st April 2016, C is admitted for 2/9th share. The godwill is to be valued at 4 year's purchase of last three years' (after allowing salaries), profits to be weighted 1: 2: 3. The greatest weight being given to last year. Calculate the value of goodwill

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