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The profits earned by a business over the last 5 years are as follows: Rs12,000 , Rs13.000, Rs 14,000 , Rs 18,000 and Rs 2,000 (loss). Based on 2 years purchase of the last 5 years profits value of Goodwill will be:

A

Rs 23,600

B

Rs 22,000

C

Rs 1,10,000

D

Rs, 1,18,000

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The correct Answer is:
B
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DK GOEL-CHANGE IN PROFIT SHARING RATIO AMONG THE EXISTING PARTNERS -HOTS
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  2. Weighted average method of calculating goodwill is used when:

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  3. The profits earned by a business over the last 5 years are as follows:...

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  4. The average profit of a business over the last five years amounted to ...

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  5. Under the capitalisation method the formula for calculating the goodwi...

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  6. The net assets of a firm including fictitious assets of Rs 5,000 are ...

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  7. Total Capial employed in the firm is Rs8,00,000, reasonable rate of re...

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  8. The average capital employed of a firm is Rs 4,00,000 and the normal ...

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  9. A firm earn Rs 1,10,000. The normal rate of return is 10%. The assets...

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  10. Capital invested in a firm is Rs 5,00,000. Normal rte of return is 10%...

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  11. P and Q were partners sharing profits and losses in the ratio of 3:2. ...

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  12. A, B and C partners sharing profits in the ratio of 4:3:2 decided to...

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  13. A, B and C were partners sharing profits and losses in the ratio of 7:...

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  14. P, Q and R were partners in a firm sharing profits in 5:3:2 ratio. The...

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  15. A, B and C are partners in a firm sharing profits in the tatio of 3:4:...

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  16. A, B and C are partner sharing profits in the ratio of 1:2:3. On 1-4-2...

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  17. X, Y and Z are partners in a firm sharing profits in the ratio 4:3:2. ...

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  18. Arun and Varun are partners sharing profits in the ratio of 4:3. Their...

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  19. X, Y and Z are partners in a firm sharing profits in the ratio of 3:2:...

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  20. X, Y and Z are partners sharing profits and losses in the ratio 5:3:2...

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