58
Working Notes:
W.N. – 1 (Calculation of Share of Profit)
The profits for the three preceding completed years were: I- ` 45,000, II- ` 30,000 and III- ` 24,000.
Average Profit= 45,000+30,000+24,000/3= 33,000
Share of Chetan’s Profit= 33,000×1×6/3×12=5,500
W.N. – 1 (Calculation of Share of Goodwill)
Average Profit= 45,000+30,000+24,000/3= 33,000
Firm’s Goodwill= 33,000×1.5=49,500
Chetan’s Share of Goodwill=49,500×1/3=16,500
Chetan will be compensated by Amar and Bharat in 1:1
Amar and Bharat = 16,500×1/2=8,250
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