Update

Muft Shiksha™ एक 100% Free Education Portal है 🇮🇳, जिसका उद्देश्य Class 9–12 के हर विद्यार्थी तक High-Quality Education को पूरी तरह मुफ्त पहुँचाना है। 🇮🇳 हम मानते हैं कि अच्छी शिक्षा किसी student की आर्थिक स्थिति पर निर्भर नहीं होनी चाहिए। 🇮🇳 हर विद्यार्थी को वही Quality Study Material, MCQs, Quizzes, Exam Preparation, Concept-Based Learning और Bilingual Support मिलना चाहिए, जो आमतौर पर महंगी Coaching या Premium Platforms में मिलता है। Muft Shiksha™ 🇮🇳 इसी सोच के साथ बनाया गया है

Subjects
0 reads0 ratings0 helpful

Goodwill is ₹180,000 and the years’ purchase is 3. What is the average profit?

Answer and explanation

Correct answer: ₹60,000

This is an inverse calculation under the average-profit method of goodwill valuation. The governing formula is: Goodwill = Average Profit × Years’ Purchase. Since goodwill is ₹180,000 and years’ purchase is 3, rearrange the formula to obtain Average Profit = Goodwill ÷ Years’ Purchase. Thus, Average Profit = ₹180,000 ÷ 3 = ₹60,000. Option A is correct. The figure ₹540,000 results from multiplying instead of dividing, ₹90,000 does not follow from either correct operation, and ₹30,000 would represent division by 6 rather than by the given three years. The answer therefore depends on using the stated units and formula carefully.

Related tags

GoodwillAverage ProfitYears PurchaseCalculationPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

Was this question useful?

No ratings yetWrite a review / Rate this question

Student Reviews

No published reviews yet.

Add Muft Shiksha to your Home Screen

In Safari, tap Share, then Add to Home Screen.