Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

The profits for the five years of a firm are as follows - year 2013 Rs. 4,00,000; year 2014 Rs. 3,98,000; year 2015 Rs. 4,50,000; year 2016 Rs. 4,45,000 and year 2017 Rs. 5,00,000. Calculate the goodwill of the firm on the basis of a 4-year purchase of 5 years average profits:

Options:

Rs. 16,54,400

Rs. 17,54,400

Rs. 18,54,400

Rs. 17,00,400

Correct Answer:

Rs. 17,54,400

Explanation:

The correct answer is Option (2) → Rs. 17,54,400