question_answer

You are required to answer the following questions 1 to 4 :

Parvez, Quadir and Rehman sharing profits in the ratio of 5:3:2. To bring the equality among the partners, on 1st April 2021, they decided to share profits equally. For this purpose, goodwill of the firm to be valued at three years purchase of the average of last five years profits. The profits of last five years are as follows:

Year 31st March 2017 31st March 2018 31st March 2019 31st March 2020 31st March 2021 Profit/Loss 60,000 Profit 1,50,000 Profit 1,70,000 Profit 1,90,000 Profit (70,000) Loss

Sacrifice or Gain of Quadir:

A) Sacrifice 5/30

B) Sacrifice 1/30

C) Gain 5/30

D) Gain 1/30