Question

Average Profit Method when Past Adjustments are Made 7. Ram and Mohan were partners sharing profits and losses in the ratio of 2:1. They admitted Shyam partner for sth share in the profits. For this purpose: the Goodwill of the firm was to be valued on the basis of three years purchase of last five years average profit. The pronts for the last five years and Bus Maurh were Year 2019 2020 2016 2018 2017 Profit 162,500) 1,87,500 1.25.000 1,25,000 100,000 Calculate Goodwill of the firm after adjusting the following: The profit of 2016-17 was calculated after charging * 25,000 for abnormal loss of goods by fire​

Answer 1

Answer:

Asin and shreya were partners sharing profit and loss in the ratio of 2:1 they admitted shyam as a partner for1/5 share in profit. Goodwill of the firm was to be valued on the basis of three years purchase of last five years average profit.