Experts can you tell me the answer of this question
Ramesh and Suresh are partners sharing profits equally. They admit Dinesh into partnership. It was agreed to value goodwill at 3 years’ purchase following Weighted Average Profit method on the basis of past 5 years’ profits. Weights assigned to each year would be- years ended 31st March, 2015-1, 2016-2, 2017-3, 2018-4 and 2019-5.
Year Ended                        Profits (₹)
31.03.2015                           90,000
31.03.2016                            80,000
31.03.2017                            1,25,000
31.03.2018                             1,50,000
31.03.2019                              1,75,000
Scrutiny of books of account revealed the following:
1. There was an abnormal loss of ₹ 15,000 during the year ended 31st March, 2015.
2. There was an abnormal gain of ₹ 10,000 during the year ended 31st March, 2017.
3. Closing Stock as on 31st March, 2018 was overvalued by ₹ 15,000.
Calculate value of goodwill. (3 marks).

Dear Student,

Regards

  • 0
What are you looking for?