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Class 12 Accountancy Reconstitution - Admission of a Partner Goodwill AccountingHard

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Average profit is (₹95000). It has already been reduced by abnormal loss of (₹20000). Years' purchase is (3). What is the correct goodwill?

Answer and explanation

Correct answer: (₹345000)

Add back abnormal loss to get normal average profit (₹115000). Goodwill is (₹115000 \times 3=₹345000).

Related tags

Abnormal Loss Average Profit Goodwill Valuation Goodwill Accounting Reconstitution Admission Of A Partner Accountancy Class 12 Mcq

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