Question

4. B and C are partners, sharing profits in the ratio of 4:3:2. D is admitted
2/9 share of profits and brings 3,00,000 as his capital and his share of goodwill
Goodwill of the firm is valued at 150% of the average profits of last three year
ILLUSTRATION 29.
cash. The new profit sharing ratio will be A:B:C:D.3:2:2:2.
which were as follows:
Year ended 31st March, 2018
(after charging loss by fire 60,000)
Year ended 31st March, 2019
Year ended 31st March, 2020
3,00,00
On 1st January 2020, a motorbike costing 80,000 was purchased and was
45.00
2,40,000​

Answer 1

capital and his share of goodwill

Goodwill of the firm is valued at 150% of the average profits of last three year.