P, Q, and R are partners sharing profits and losses in the ratio of 2 : 2 : 1. They admit 5 for 1/5th share. For the purpose of admission of 5, the goodwill of the firm is to be valued at 3 years’ purchase of the average of 5 years’ profit or loss. The profits (Loss) are:
P, Q, and R are partners sharing profits and losses in the ratio of 2 : 2 : 1. They admit 5 for 1/5th share. For the purpose of admission of 5, the goodwill of the firm is to be valued at 3 years’ purchase of the average of 5 years’ profit or loss. The profits (Loss) are:
| Year | Profits/Loss (₹) |
| 2018-19 | 30,000 |
| 2019-20 | 70,000 |
| 2020-21 | 1,00,000 |
| 2021-22 | 1,40,000 |
| 2022-23 | (1,20,000) |
On 1st April 2022, a motor cycle costing ₹ 40,000 was purchased and debited to Travelling Expenses, on which depreciation is to be charged @ 25%. The value of goodwill is
a) ₹ 50,000
b) ₹ 1,56,000
c) ₹ 1,50,000
d) ₹ 1,60,000
Anurag Pathak Changed status to publish April 18, 2023
