PQR are three partners in a firm, they decided to admit S a fourth partner in...

 

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PQR are three partners in a firm, they decided to admit S a fourth partner in the firm with 1/4th share of profit and loss in the firm. Firm decides to revalue the goodwill of the firm on the basis of 3 years purchase of past 4 years average profits. What would be the value of the goodwill of the firm if the firm decides to revalue the goodwill based on 5 years super profit and an average profit of the industry during the year is 14,000 p.a? Actual past profit of the firm are as follows: 2010 Rs. 22,000 Rs. 17,000 Rs. 22,000 Rs. 19,000 2011 2012 2013 PQR are three partners in a firm, they decided to admit S a fourth partner in the firm with 1/4th share of profit and loss in the firm. Firm decides to revalue the goodwill of the firm on the basis of 3 years purchase of past 4 years average profits. What would be the value of the goodwill of the firm if the firm decides to revalue the goodwill based on 5 years super profit and an average profit of the industry during the year is 14,000 p.a? Actual past profit of the firm are as follows: 2010 Rs. 22,000 Rs. 17,000 Rs. 22,000 Rs. 19,000 2011 2012 2013

Answer rating: 100% (QA)

The value of the goodwill of the firm would be Rs 171429 if the firm decides to rev... View the full answer