Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:
"A Ltd. has a Weighted Average Profit of Rs 50,000. Goodwill will be valued at four year's purchase. Goodwill will be -"
Options:
2,00,000
50,000
1,00,000
12,500
Correct Answer:
2,00,000
Explanation:
"Goodwill = W.A.P * No. of years purchased
= 50,000 * 4 = 2,00,000"