Question

Arun and Bharat are partners sharing profit and profit in the ratio of 3 ratio 2 they decided to add mint Mannu as a partner from first emperor in 2020 on the following term first you will be given by v share of profit second Goodwill of the will be held at two of the three years normal profit of the firm profit of the year ended 31st March were 120 profit 30,000 after loss of stock buy fire 40000 2019 loss 80,000 included volunteer retirement compensation paid 110000 2018 profit 100001 110000 including gain of profit 30,000 on the sales of fixed asset calculate the value of goodwill

Answer 1

Step-by-step explanation:

Given Arun and Bharat are partners sharing profit  in the ratio of 3:2  they decided to add mint Mannu as a partner from first  April 2020 on the following terms. Manu will be given 2/5th share of profit. Goodwill of the firm will be valued at two years purchase of three years normal average profit of the firm.

• Profits of previous 3 years ended 31st March were
• 2020 Profit of Rs 30,000 after debiting loss of stock by fire Rs 40,000
• 2019 Loss of Rs 80,000 includes voluntary retirement compensation paid Rs 1,10,000
• 2018 Profit of Rs 1,10,000 including a gain(profit) of Rs 30,000 on the sale of fixed assets.
• Calculate the value of goodwill.
• So there is a profit of Rs 30,000 in 2020 and there is a loss of stock by fire is Rs 40,000
• If there was no loss then there would be more profit. So it can be added
• In 2019 there was loss of Rs 80,000 and there is a compensation of Rs 1,10,000 and if there was no compensation then the loss would be a little less. So it could be added.
• In 2018 there was a profit of 30,000 on sale of fixed assets. So there is a normal gain. If there was no fixed assets then there would be less profit. So the gain is subtracted.
• So calculation of normal profit will be
• Year         Profit           Adjustment          Normal profit
• 2020       30,000              40,000                70,000
• 2019       80,000(loss)   1,10,000              30,000  
• 2018      1,10,000            (30,000)             80,000
•                                 So total                  1,80,000
• So average profit for the past 3 years = 1,80,000 / 3
•                                                                         = Rs 60,000
• Now we need to calculate Goodwill at 2 years purchase, so we get
• Goodwill = average profit x number of years purchased
•               = 60,000 x 2
•              = 1,20,000

Reference link will be

https://brainly.in/question/15908264

Answer 2

answer is 120000

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