Question

6. Gagan and Vinayak are partners sharing profits and losses equally,
They have earned * 25,000; * 30,000; 45,000; 15,000 and 25,000 in the past five years,
Ascertain the value of goodwill assuming 3 years' of purchase on average profit basis,

Answer 1

Answer:

Goodwill =84000

Explanation:

25000+30000+45000+15000+25000=1,40,000

average profit=140000/5=28000

goodwill=average profit ✖no. of year purchased

= 28000✖3

=84000. (ans)