Question

and are partners sharing profits in the ratio of 32. They die
puerbip with th share in future profits. The new profit sharing medias
Cling into the business 50,000 for his capital but could not bring any amount or
will. The firm's goodwill on C's admission was valued at $48,000.​

Answer 1

Explanation:

A firm had employed 400000 as capital and earned profits of 75000 including 15000 received as insurance claim . The money could be invested in a bank for 3 years @10% per annum.

Considering 2% as fair compensation for risk involved in the firm, calculate goodwill of the firm on the basis of capitalisation method.