Question

a and b are partners in 2:1. C is admitted for 1/5 share in profits. calculate goodwill at 60% of the average profits of last four years

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Answer 1

Answer:

A and B are partner in 2:1 ratio. C is admitted for 1/5 shares in profits. Calculate goodwill

60% of average profits of the late four years:

Year Profit (Rs)

1 8,000

2 1 ½ times of 3rd year

3 Profit for the 6 month is 40% of profit of first year and remaining 6

month profits is two times of first Six month profits.

4 50% of profit of second year.

Calculate C’s share in Goodwill