X,Y and Z are three partners in a firm. They are sharing profit and loss in...

 

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X,Y and Z are three partners in a firm. They are sharing profit and loss in the ratio of 3:2:1. On 11th Jan Y died. The firm decided to value goodwill based on 3 years purchase of weighted average of 5 years profit. The trading profit of the firm for the pass five years before changing interest on capital was as under rs.10,000, Rs.9000,Rs.11000,Rs.7000, Rs.8000. The capital of the firm stood Rs.50,000 and Interest on capital is given at 8%. What is the total goodwill of the firm? X,Y and Z are three partners in a firm. They are sharing profit and loss in the ratio of 3:2:1. On 11th Jan Y died. The firm decided to value goodwill based on 3 years purchase of weighted average of 5 years profit. The trading profit of the firm for the pass five years before changing interest on capital was as under rs.10,000, Rs.9000,Rs.11000,Rs.7000, Rs.8000. The capital of the firm stood Rs.50,000 and Interest on capital is given at 8%. What is the total goodwill of the firm?

Answer rating: 100% (QA)

average profit 10000... View the full answer