CUET Preparation Today
CUET
-- Accountancy Part A
Accounting for Partnership
The profits of firm for the five years are as follows:
Year
Profit (Rs.)
2012-13
20,000
2013-14
24,000
2014-15
2015-16
2016-17
16,000
Calculate the value of goodwill on the basis of three years' purchase of average profits.
Rs. 20,000
Rs. 40,000
Rs. 60,000
Rs. 70,000
The correct answer is Option (3) → Rs. 60,000