question_answer

VK and GN are partners. They admit KK as new partner and goodwill of the firm was to be calculated at two years purchase of the average profits of last 4 years. The profits/loss of last 5 years were as follows (to be used last four years only) :

Year	2016-17	2017-18	2018-19	2019-20	2020-21
Profit	10,000	70,000	90,000	?	50,000
	Profit	Profit	Profit		Profit

Goodwill of the firm was Rs.90,000. Profit/loss for the year 2019-20 was:

A) 40,000 Loss 

B) 30,000 Loss 

C) 30,000 Profit 

D) 40,000 Profit