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Class 12 Accountancy Reconstitution - Admission of a Partner Goodwill AccountingHard

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Average profit is (₹125000). It has already been reduced by abnormal loss of (₹25000). Years' purchase is (2). What is the correct goodwill?

Answer and explanation

Correct answer: (₹300000)

Add back abnormal loss to get normal average profit (₹150000). Goodwill is (₹150000 \times 2=₹300000).

Related tags

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

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