If three partners A, B & C are sharing profits as 5: 3: 2, then on...

 

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If three partners A, B & C are sharing profits as 5: 3: 2, then on the death of a partner A, how much B & C will pay to A's execute on account of goodwill if Goodwill is to be calculated from 2 years purchase of the last three years average profits. Profits for three years are: Rs.6, 58, 000; Rs.6, 92, 000 and Rs.8, 10, 000. If three partners A, B & C are sharing profits as 5: 3: 2, then on the death of a partner A, how much B & C will pay to A's execute on account of goodwill if Goodwill is to be calculated from 2 years purchase of the last three years average profits. Profits for three years are: Rs.6, 58, 000; Rs.6, 92, 000 and Rs.8, 10, 000.

Answer rating: 100% (QA)

Profit sharing ratio of A B and C 5 32 As share 510 As share of goodwill Total goodwill As sh... View the full answer