0
A and B are partners. They admit C for 1/4th share in profits. For this purpose goodwill is to be valued at three year’s purchase of super profits. Following information is provided to you:
A’s Capital 5,00,000
B’s Capital 4,00,000
General Reserve 1,50,000
Profit & Loss A/c (Cr.) 30,000
Sundry Assets 12,00,000
The normal rate of return is 15% p.a. Average Profits are ₹ 2,00,000 per year. You are required to calculate C’s share of goodwill. [Ans. C’s share of goodwill ₹ 28,500.]
Anurag Pathak Answered question July 12, 2024
Add a Comment