Sarthaks Test
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A and B are partners in a firm with capital of Rs.60,000 and Rs.1,20,000 respectively. They decide to admit C into the partnership for 1/4th share in the future profits. C is to bring in a sum of Rs.70,000 as his capital. Calculate amount of goodwill. 

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Capitalised value of the firm on the basis of C's share  =70,000 x 4 /1 = Rs .2,80,000

Goodwill = Capitalised value of the - actual capital of the firm 

= 2,80,000 - 2, 50, 000

= Rs. 30,000

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