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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...
(29600+28700+28900+24000+26800) /5=27600
goodwill on the basis of 3 year purchase=27600×3=82800.
D's share of goodwill = (82800×4) /16=20700.
goodwill on the basis of 3 year purchase=27600×3=82800.
D's share of goodwill = (82800×4) /16=20700.
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R, J and D are the partners sharing profits in the ratio 7:5:4. D died...
Average of profits. The profits for the years ending 31st December 2003, 31st December 2004 and 31st December 2005 were $40,000, $50,000 and $60,000 respectively. Calculate the value of goodwill on the date of D's death.
To calculate the value of goodwill, we first need to find the average profit for the three years.
Average profit = (Profit in 2003 + Profit in 2004 + Profit in 2005) / 3
= ($40,000 + $50,000 + $60,000) / 3
= $150,000 / 3
= $50,000
Next, we need to calculate the share of D's profit in the average profit.
D's share of profit = Average profit * (D's profit ratio / Total profit ratio)
= $50,000 * (4 / (7 + 5 + 4))
= $50,000 * (4 / 16)
= $50,000 * 0.25
= $12,500
Therefore, the value of goodwill on the date of D's death is $12,500.
To calculate the value of goodwill, we first need to find the average profit for the three years.
Average profit = (Profit in 2003 + Profit in 2004 + Profit in 2005) / 3
= ($40,000 + $50,000 + $60,000) / 3
= $150,000 / 3
= $50,000
Next, we need to calculate the share of D's profit in the average profit.
D's share of profit = Average profit * (D's profit ratio / Total profit ratio)
= $50,000 * (4 / (7 + 5 + 4))
= $50,000 * (4 / 16)
= $50,000 * 0.25
= $12,500
Therefore, the value of goodwill on the date of D's death is $12,500.
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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?.
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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
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