Question

Mahesh and suresh are partners and they admit naresh into partnership. they agreed to value goodwill at three years purchase on weighted average profit method taking profits for last five years. they assigned weights from 1-5 beginning from the earliest year onwards. The profits for the last five years were: 2016 - 125000rs. 2017 - 140000rs. 2018 - 120000rs. 2019 - 55000rs. 2020 - 257000rs. Scrutiny of books of accounts revealed the following 1 - A second hand machine was purchased for ₹500000 on 1st july 2018 and ₹100000 were spent to make it operational. ₹100000 were wrongly debited to repairs account. Machinery is depriciated @20%p.a. on written down method. 2 - Closing stock on 31st march 2019 was undervalued by ₹50000. 3 - Management cost ₹400000p.a. was to be considered as charge against profit. Calculate the value of goodwill.

Answer 1

Answer:

if you will mark me brainlist you will get 3 points

Answer 2

Answer:

brainly is not good bocz answers are given in brainly is raadiii