Raman and Daman are partners sharing profits in the ratio of 60 : 40 and for the last four years they have been getting annual salaries of ₹ 50,000 and ₹ 40,000 respectively
Raman and Daman are partners sharing profits in the ratio of 60 : 40 and for the last four years they have been getting annual salaries of ₹ 50,000 and ₹ 40,000 respectively. The annual accounts have shown the following net profits before charging partner’s salaries:
Year ended 31st March, 2021 – ₹ 1,40,000; 2022 – ₹ 1,01,000 and 2023 – ₹ 1,30,000.
On 1st April, 2023, Zeenu is admitted to the partnership for 1/4th share in profit (without any salary). Goodwill is to be valued at four year’s purchase of weighted average profit of last three years (after partner’s salaries): profits to be weighted as 1 : 2 : 3, the greatest weight being given to the last year:
Anurag Pathak Changed status to publish May 3, 2024
