Question No 3 of TS Grewal (CBSE)

Purav and Purvi are partners in a firm sharing profits and losses in the ratio of 2:1. They admit Parv into partnership for 1/4th share on 1st April. For this purpose, goodwill is to be valued at four times the average annual profit of the previous four or five years, whichever is higher. The agreed profits for goodwill purpose of the past five years ended 31st March, are:

Year

XXXX

XXXX

XXXX

XXXX

XXX

Profit (Rs.)

14,000

15,500

10,000

16,000

15,000

Solution No 3 of TS Grewal (CBSE)

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