Question

4. Goodwill of Indian Snacks, a partnership firm, is Rs. 10,00,000 calculated on 2.5 year's purchase of average profits of last years. What is the value of X? FY 2021 7,00,000 2020 Profits 2019 3,00,000 Х (a) Rs. 65,00,000 (b) Rs. 4,00,000 (c) Rs. 2,00,000 (d) Rs. 15,00,000 5. Goodwill can be (a) Purchased (b) Self-generated (c) Both (a) and (b)​

Answer 1

Answer:

c is correct answer Rs 200000

Answer 2

"(d) Rs. 15,00,000"

Explanation:

Goodwill of the firm = 1000000

Average profit:

       2021 = 700000

       2020 = X

       2019 = 300000

Therefore,

                  Goodwill of firm = Total no. of average profits/No. of years

               i.e;  700000+X+300000/2.5 = 1000000

                  =   1000000+X = 1000000 x 2.5

                  =   1000000+X = 2500000

                  =   X = 1500000