Practice question
Question
X and Y share profits and losses in the ratio of 2: 1. They take Z as a partner and the new profit-sharing ratio becomes 3: 2: 1. Z brings Rs. 4,500 as a premium for goodwill. What will be the value of the firm’s goodwill?
Explanation
Rs. 27,000 partnership correct; deed provisions interest capital drawings as per Act.
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