| At the time of Change in partnership agreement due to admission of a new partner, the Goodwill of the firm was to be valued at two years purchase of the average profit of the last three years. The profits were as under: |
| 2018-19 : Rs.40,000 (Excluding an abnormal gain of Rs.10,000) |
| 2019-20 : Rs.40,000 (after charging an abnormal loss of Rs.10,000) |
| 2020-21: Rs.20,000 (including an abnormal gain of Rs.5,000) |
| The Goodwill of the firm will be : |
A) 76,667
B) 55,000
C) 63,333
D) 70,000
Correct Answer: D
Solution :
70,000
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