Sarthaks Test
0 votes
381 views
in Accounts by (64.1k points)
edited by

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. 

1 Answer

0 votes
by (106k points)
selected by
 
Best answer

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

Related questions

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...