Question

While admitting Ravi as a partner, goodwill in the books of account wasRs. 4,500. On his admission, the Goodwill was valued on the basis of two
years' purchase of the average profits of the preceding 5 years. The profits of the
previous five years were 1995-96 profit: Rs. 2.000; 1996-97 profit:
Rs. 10,000; 1997-98 profit: Rs. 15,000; 1998-99 loss: Rs. 12,000; 1999-
2000 profit: Rs. 30,000. Find out Goodwill.

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Answer 1

Answer:

answer is this : Rs. 20,800.