question_answer

Find out the profit for the year 2016-17 from the following information:

Year	2016-17	2017-18	2018-19	2019-20	2020-21
Profit/Loss	?	50,000	30,000	Loss 20,000	50,000.

Firm had calculated goodwill due to change in profit sharing ratio among the partners at 2.5 years purchase of average profit of last five years. Goodwill was valued at Rs.75,000. Profit for the year 2016-17 was:

A) 35,000

B) 38,000

C) 40,000

D) 42,000