Raj & Associates is a partnership firm. Ajay is admitted as a partner. Its Goodwill is to be valued by Average Profit Method. The average profit for the past 5 years is ₹ 1,50,000, and Goodwill is being valued at 3 years’ purchase of average profit, the value of Goodwill of the firm will be:
Raj & Associates is a partnership firm. Ajay is admitted as a partner. Its Goodwill is to be valued by Average Profit Method. The average profit for the past 5 years is ₹ 1,50,000, and Goodwill is being valued at 3 years’ purchase of average profit, the value of Goodwill of the firm will be:
a) ₹ 4,50,000
b) ₹ 1,50,000
c) ₹ 3,00,000
d) ₹ 6,00,000
Anurag Pathak Changed status to publish April 16, 2023
Ans – a)
Explanation:-
Value of Goodwill = Average profit of the last 5 years * 3 years purchase
Value of Goodwill = 1,50,000 * 3
Value of Goodwill = ₹ 4,50,000
Anurag Pathak Changed status to publish April 16, 2023
