P, R, and S are partners sharing profits in the ratio of 4:3:1. It is provided in the
Partnership Deed that, on the death of any partner , Deceased Partner’s share of goodwill
will be valued at half of the profits credited to his account during the previous four
completed years. R died on 1st April ,2020 . The firm’s Profit or Loss for the last four years
ended 31st March are : 2017 – 1,20,000, 2018 – 60,000, 2019 – 20,000(loss) , 2020 –
80,000. Determine the amount that should be credited to R as his share of goodwill.
A Rs .45,000 B Rs. 50,000
C Rs. 55,000 D Rs. 54,000
Answers
Answered by
8
Answer:
profit of last four years = 120000+60000+80000-20000
=240000
R share of good will =240000×3/8×1/2
= 45000
45000 is the answer
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