Riya and Kiya are partners in a firm sharing profits in the ratio of 3:2. Their capitals were Rs. 80,000 and Rs. 50,000 respectively. They admitted Siya on Jan. 1, 2025 as a new partner for 1/5th share in the future profits. Siya brought Rs. 60,000 as his capital and the necessary amount of goodwill. Calculate Siya's share of goodwill.

Rs. 22,000

Correct answer: Option (3) → Rs. 22,000

Concept: Under the capitalisation method, the incoming partner’s capital reveals the total capitalised value of the firm; goodwill = capitalised value – combined capital (net worth), per Reconstitution of a Partnership Firm – Admission of a Partner.

Siya brings Rs 60,000 for a 1/5 share, so capitalised value of firm = 60,000 × 5 = Rs 3,00,000.
Combined capital of all partners = 80,000 + 50,000 + 60,000 = Rs 1,90,000.
Goodwill of firm = 3,00,000 – 1,90,000 = Rs 1,10,000.
Siya’s share of goodwill = 1,10,000 × 1/5 = Rs 22,000.