Question

. Abhay, Babu and Charu are partners sharing profits and losses equally. They agree to admit Dames
equal share of profit. For this purpose, the value of goodwill is to be calculated on the basis of four ye
purchase of average profit of last five years. These profits for the year ended 31st March were
Year
2018
2019
2020
Pros)
150.000
5.00.000
7.10.000
5.90.000
On 1st April 2013. a car cesting 100.000 was purchased and debited to Travelling Expenses Account
which depreciation is to be charged 25% pa. Interest of 10,000 on Non-trade Investments is one
to income for the year ended 31st March 2019 and 2020
Calculate the value of good after adjusting the above.​

Answer 1

Answer:

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