Annu, Baby, and Chetan are partners in a firm sharing profits and losses equally. They take Deep into partnership from 1st April 2023 for 1/5th share in the future profits.
Annu, Baby, and Chetan are partners in a firm sharing profits and losses equally.
They take Deep into partnership from 1st April 2023 for 1/5th share in the future profits.
For this purpose, goodwill is valued at 100% of the average annual profit of the previous three or four years, whichever is higher.
The annual profits for the purpose of goodwill for the past four years were:
| Year Ended | Profit (₹) |
| 31st March 2023 | 2,88,000 |
| 31st March 2022 | 1,81,800 |
| 31st March 2021 | 1,87,200 |
| 31st March 2020 | 2,53,200 |
Calculate the value of goodwill
[Ans: Goodwill – ₹ 2,27,550.]
Anurag Pathak Changed status to publish April 17, 2023
