1.

Akanksha, Chetna, and Dipanshu are partners in the firm sharing profits and losses in the ratio of 3:2:1. They decide to take Jatin into the partnership for 1/5 share in the future profits. For this purpose, goodwill is to be valued at 2 times the average annual profits of the previous four years. The average profits for the past four years were: 2008 - Rs. 96,000 2009 - Rs. 60,600 2010 - Rs. 62,400 2011 - Rs. 84,400 Calculate the value of goodwill.

Answer»

Akanksha, Chetna, and Dipanshu are partners in the firm sharing profits and losses in the ratio of 3:2:1. They decide to take Jatin into the partnership for 1/5 share in the future profits. For this purpose, goodwill is to be valued at 2 times the average annual profits of the previous four years. The average profits for the past four years were:

2008 - Rs. 96,000

2009 - Rs. 60,600

2010 - Rs. 62,400

2011 - Rs. 84,400

Calculate the value of goodwill.




Discussion

No Comment Found

Related InterviewSolutions