Question

(Average Profit Method) Partner X is admitted in the firm of A and B for 1/5th share.
Calculate new partners share in goodwill on the basis of following information :
2015 Profit
30,000
2016 Profit
50,000
2017 Loss
320,000
2018 Profit
340,000
2019 Profit
*50,000

Answer 1

Answer:

6,000

Explanation:

30,000+50,000-320,000+340,000+50000= 1,50,000

1,50,000÷5 years = 30,000

30,000×1/5 = 6,000