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A, B and C are partners sharing profits and losses equally. They agree to admit D for equal share. For this purpose goodwill is to be valued at 3 year’s purchase of average profits of last 5 years which were as follows:

 
Year ending on 31st March 2018 60,000
Year ending on 31st March 2019 1,50,000
Year ending on 31st March 2020 (20,000)
Year ending on 31st March 2021 2,00,000
Year ending on 31st March 2022 1,85,000

On 1st October, 2021 a computer costing ₹ 40,000 was purchased and debited to office expenses account on which depreciation is to be charged @ 25% p.a. Calculate the value of goodwill.

[Ans. Goodwill ₹ 3,66,000.]

Anurag Pathak Answered question June 27, 2024
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