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Class 12 Accountancy Reconstitution - Admission of a Partner Goodwill AccountingHard

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Profits of the last three years are (₹40000), (₹60000), (₹80000) and weights are (1:2:3). What is goodwill at two years' purchase by weighted average profit method?

Answer and explanation

Correct answer: (₹133333.33)

Weighted average profit is ((40000+120000+240000)/6=₹66666.67). Goodwill is (₹66666.67 \times 2=₹133333.33).

Related tags

Weighted Average Profit Goodwill Valuation Numerical Goodwill Accounting Reconstitution Admission Of A Partner Accountancy Class 12 Mcq

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