question_answer

At the time of reconstitution of a partnership firm, Goodwill was valued on the basis of three years purchase of the weighted average profits of the last four years. The profits and losses of the preceding four years were:

Particulars	Profit	Weights
2017-18	22,000	1
2018-19	27,000	2
2019-20	32,000	3
2020-21	35,000	4

While valuing Goodwill of the firm, it was found that the closing stock of the year 2019-20 was undervalued by Rs.2,000.Goodwill of the firm will be:

A) 90,000

B) 91,000

C) 92,000

D) 93,000