A partnership's revenues for the past three years were as follows £420,000, £380,000 and £300,000. It has a building which is in the statement of financial position at £150,000, though this has been valued at £210,000, fixtures worth £20,000, two motor vehicles worth £10,000 each, is owed £75,000 from customers, owes suppliers £30,000, has two hire purchase agreements with a combined outstanding balance of £5,000 and has a mortgage on the building of £100,000. If the partnership agreement states that the valuation of the partnership should be based on the average of the previous 3 years sales, what will the goodwill figure be?

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The Answer of A partnership's revenues for the past three years were as follows £420,000, £380,000 and £300,000. It has a building which is in the statement of financial position at £150,000, though this has been valued at £210,000, fixtures worth £20,000, two motor vehicles worth £10,000 each, is owed £75,000 from customers, owes suppliers £30,000, has two hire purchase agreements with a combined outstanding balance of £5,000 and has a mortgage on the building of £100,000. If the partnership agreement states that the valuation of the partnership should be based on the average of the previous 3 years sales, what will the goodwill figure be?

A Partnership's Revenues for the Past Three Years Were as Follows