Geet and meet at the partners in a firm they admit Jeet into partnership for equal share it it was agreed that Goodwill will be valued at three years purchase of average profit of last 5 year profit for the last 5 year
Answers
Answered by
21
Answer:
3,00,000
Explanation:
2017- as it was an abnormal gain we will subtract 50,000
2018- as it was an abnormal loss we will add 25000
2019- as it was an abnormal expense we will add 1,00,000
and subtract 15,000 (depreciation)
2020- we will subtract the depreciation (17,000)
working notes:-
2019 depreciation 1,00,000×20%×9/12=15,000
2020 depreciation 1,00,000-15,000×20%=17,000
Attachments:
Similar questions