Question

Q. 5. A, B and C are partners sharing profits and losses equally. They agree to admit D for equal share. For this purpose goodwill is to be valued at 3 year's purchase of average profits of last 5 years which were as follows: F ₹ Year ending on 31st March 2013 60,000 (Profit) Year ending on 31st March 2014 1,50,000 (Profit) Year ending on 31st March 2015 20,000 (Loss) Year ending on 31st March 2016 2,00,000 (Profit) Year ending on 31st March 2017 1,85,000 (Profit) on 1st October, 2016 a computer costing 340,000 was purchased and debited to office expenses account on which depreciation is to be charged @25% p.a. Calculate the value of goodwill. [Ans. Goodwill 3,66,000.]​

Answer 1

Answer:

goodwill = 122000 × 3 = 366000

Answer 2

Answer:

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