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R, J and D are the partners sharing profits in the ratio 7:5:4. D died on 30th June 2006. It was decided to value the goodwill on the basis of three year’s purchase of last five years average profits. If the profits are Rs. 29,600; Rs. 28,700; Rs. 28,900; Rs. 24,000 and Rs. 26,800. What will be D’s share of goodwill?
- a)Rs. 20,700
- b)Rs. 27,600
- c)Rs. 82,800
- d)Rs. 27,000
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
R, J and D are the partners sharing profits in the ratio 7:5:4. D died...
Average of the profits of the last four years. The profits for the years ended 31st December 2003, 2004, 2005 and 30th June 2006 were $50,000, $60,000, $70,000 and $30,000 respectively. Calculate the value of goodwill on the date of D's death.
To calculate the value of goodwill, we need to find the average profit for the last four years.
Average profit = (Profit for year 2003 + Profit for year 2004 + Profit for year 2005 + Profit for year 2006) / 4
Profit for year 2006 needs to be adjusted because D died on 30th June 2006.
Profit for year 2006 = Profit for year 2006 * (12 months / 6 months)
= $30,000 * (12/6)
= $60,000
Now we can calculate the average profit:
Average profit = ($50,000 + $60,000 + $70,000 + $60,000) / 4
= $240,000 / 4
= $60,000
Since the average profit for the last four years is $60,000, the value of goodwill on the date of D's death is $60,000.
To calculate the value of goodwill, we need to find the average profit for the last four years.
Average profit = (Profit for year 2003 + Profit for year 2004 + Profit for year 2005 + Profit for year 2006) / 4
Profit for year 2006 needs to be adjusted because D died on 30th June 2006.
Profit for year 2006 = Profit for year 2006 * (12 months / 6 months)
= $30,000 * (12/6)
= $60,000
Now we can calculate the average profit:
Average profit = ($50,000 + $60,000 + $70,000 + $60,000) / 4
= $240,000 / 4
= $60,000
Since the average profit for the last four years is $60,000, the value of goodwill on the date of D's death is $60,000.
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R, J and D are the partners sharing profits in the ratio 7:5:4. D died on 30th June 2006. It was decided to value the goodwill on the basis of three year’s purchase of last five years average profits. If the profits are Rs. 29,600; Rs. 28,700; Rs. 28,900; Rs. 24,000 and Rs. 26,800. What will be D’s share of goodwill?a)Rs. 20,700b)Rs. 27,600c)Rs. 82,800d)Rs. 27,000Correct answer is option 'A'. Can you explain this answer?
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R, J and D are the partners sharing profits in the ratio 7:5:4. D died on 30th June 2006. It was decided to value the goodwill on the basis of three year’s purchase of last five years average profits. If the profits are Rs. 29,600; Rs. 28,700; Rs. 28,900; Rs. 24,000 and Rs. 26,800. What will be D’s share of goodwill?a)Rs. 20,700b)Rs. 27,600c)Rs. 82,800d)Rs. 27,000Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about R, J and D are the partners sharing profits in the ratio 7:5:4. D died on 30th June 2006. It was decided to value the goodwill on the basis of three year’s purchase of last five years average profits. If the profits are Rs. 29,600; Rs. 28,700; Rs. 28,900; Rs. 24,000 and Rs. 26,800. What will be D’s share of goodwill?a)Rs. 20,700b)Rs. 27,600c)Rs. 82,800d)Rs. 27,000Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for R, J and D are the partners sharing profits in the ratio 7:5:4. D died on 30th June 2006. It was decided to value the goodwill on the basis of three year’s purchase of last five years average profits. If the profits are Rs. 29,600; Rs. 28,700; Rs. 28,900; Rs. 24,000 and Rs. 26,800. What will be D’s share of goodwill?a)Rs. 20,700b)Rs. 27,600c)Rs. 82,800d)Rs. 27,000Correct answer is option 'A'. Can you explain this answer?.
R, J and D are the partners sharing profits in the ratio 7:5:4. D died on 30th June 2006. It was decided to value the goodwill on the basis of three year’s purchase of last five years average profits. If the profits are Rs. 29,600; Rs. 28,700; Rs. 28,900; Rs. 24,000 and Rs. 26,800. What will be D’s share of goodwill?a)Rs. 20,700b)Rs. 27,600c)Rs. 82,800d)Rs. 27,000Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about R, J and D are the partners sharing profits in the ratio 7:5:4. D died on 30th June 2006. It was decided to value the goodwill on the basis of three year’s purchase of last five years average profits. If the profits are Rs. 29,600; Rs. 28,700; Rs. 28,900; Rs. 24,000 and Rs. 26,800. What will be D’s share of goodwill?a)Rs. 20,700b)Rs. 27,600c)Rs. 82,800d)Rs. 27,000Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for R, J and D are the partners sharing profits in the ratio 7:5:4. D died on 30th June 2006. It was decided to value the goodwill on the basis of three year’s purchase of last five years average profits. If the profits are Rs. 29,600; Rs. 28,700; Rs. 28,900; Rs. 24,000 and Rs. 26,800. What will be D’s share of goodwill?a)Rs. 20,700b)Rs. 27,600c)Rs. 82,800d)Rs. 27,000Correct answer is option 'A'. Can you explain this answer?.
Solutions for R, J and D are the partners sharing profits in the ratio 7:5:4. D died on 30th June 2006. It was decided to value the goodwill on the basis of three year’s purchase of last five years average profits. If the profits are Rs. 29,600; Rs. 28,700; Rs. 28,900; Rs. 24,000 and Rs. 26,800. What will be D’s share of goodwill?a)Rs. 20,700b)Rs. 27,600c)Rs. 82,800d)Rs. 27,000Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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R, J and D are the partners sharing profits in the ratio 7:5:4. D died on 30th June 2006. It was decided to value the goodwill on the basis of three year’s purchase of last five years average profits. If the profits are Rs. 29,600; Rs. 28,700; Rs. 28,900; Rs. 24,000 and Rs. 26,800. What will be D’s share of goodwill?a)Rs. 20,700b)Rs. 27,600c)Rs. 82,800d)Rs. 27,000Correct answer is option 'A'. Can you explain this answer?, a detailed solution for R, J and D are the partners sharing profits in the ratio 7:5:4. D died on 30th June 2006. It was decided to value the goodwill on the basis of three year’s purchase of last five years average profits. If the profits are Rs. 29,600; Rs. 28,700; Rs. 28,900; Rs. 24,000 and Rs. 26,800. What will be D’s share of goodwill?a)Rs. 20,700b)Rs. 27,600c)Rs. 82,800d)Rs. 27,000Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of R, J and D are the partners sharing profits in the ratio 7:5:4. D died on 30th June 2006. It was decided to value the goodwill on the basis of three year’s purchase of last five years average profits. If the profits are Rs. 29,600; Rs. 28,700; Rs. 28,900; Rs. 24,000 and Rs. 26,800. What will be D’s share of goodwill?a)Rs. 20,700b)Rs. 27,600c)Rs. 82,800d)Rs. 27,000Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice R, J and D are the partners sharing profits in the ratio 7:5:4. D died on 30th June 2006. It was decided to value the goodwill on the basis of three year’s purchase of last five years average profits. If the profits are Rs. 29,600; Rs. 28,700; Rs. 28,900; Rs. 24,000 and Rs. 26,800. What will be D’s share of goodwill?a)Rs. 20,700b)Rs. 27,600c)Rs. 82,800d)Rs. 27,000Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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