Question

Year
10. Abhay, Babu and Charu are partners sharing profits and losses equally. They agree to admit Daman for
equal share of profit. For this purpose, the value of goodwill is to be calculated on the basis of four years'
purchase of average profit of last five years. These profits for the year ended 31st March, were:
2017
2018
2019
2020
2021
1,50,000
3,50,000
5,00,000
7,10,000
(5,90,000)
On 1st April, 2020, a car costing ? 1,00,000 was purchased and debited to Travelling Expenses Account,
on which depreciation is to be charged @ 25% p.a. Interest of * 10,000 on Non-trade Investments is
credit to Income for the year ended 31st March, 2020 and 2021.
Calculate the value of goodwill after adjusting the above.
[Ans.: Goodwill-79,40,000.)
Profit/(Loss) (*)

Answer 1

Answer:

Goodwill-79,40,000 Is The Answer

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Answer 2

Answer:

Babu and Charu are partners sharing profits and losses equally. They agree to admit Daman for equal share of profit. For this purpose, the value of goodwill is to be calculated on the basis of four years purchase of average profit of last five years.