A, B and C are the partners sharing profits in the ratio 7:5: 4. C died...

 

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A, B and C are the partners sharing profits in the ratio 7:5: 4. C died on 30th June. It was decided to value the goodwill on the basis of three year's purchased of last five year average profits. If the Profits are Rs. 53,600; Rs. 57,400; Rs.57,800; Rs. 48,000 and Rs. 26,800. What will be C's share of goodwill? A, B and C are the partners sharing profits in the ratio 7:5: 4. C died on 30th June. It was decided to value the goodwill on the basis of three year's purchased of last five year average profits. If the Profits are Rs. 53,600; Rs. 57,400; Rs.57,800; Rs. 48,000 and Rs. 26,800. What will be C's share of goodwill?

Answer rating: 100% (QA)

Goodwill is created in the ledger accounts as it is an asset ... View the full answer