Question

Aand B are partners in a firm sharing profits and losses in the ratio of 2 . 1
decide to take Cinto partinership for 1/5th share on Ist April 2017, For this parg
goodwill is to be valued at 80% of the average annual profits of the previous threreo
four years, whichever is higher.
The average profits for the last four years are :
98,000
80,000
76,000
1,20,000
Year ending on 3 1st March 2014
Year ending on 3 1st March 2015
Year ending on 31st March 2016
Year ending on 31st March 2017
Calculate the value of Goodwill.

Answer 1

avg profit of last 4 yrs is more so...