Question

Q7 Seema, poonam and Gori, were partners sharing profits and losses in

ratio of 7: 3: 2 .Goodwill is to be valued at the average of three year’s

profits preceding the date of change in profit sharing ratio. The profits for

1999, 2000, 2001 and 2002, were Rs. 208,000, Rs.1,92,000, Rs. 2,40,000

and Rs. 3,60,000 respectively. Find out the value of goodwill.​

Answer 1

Answer:

2,50,000 is the total goodwill

Total all the profits of last years i e 208000+ 192000+ 240000+ 360000/ 4 = 250000