Himanshi and Nisha are partners in a firm sharing profit in the ratio of 3 : 2. There capital were ₹80,000 and ₹50,000 Respectively. They admitted Shikha on Jan 1, 2023 as a new partner for $\frac{1}{5}$ share in future profit. If Shikha brought ₹ 60,000 as capital, the value of goodwill of the firm will be:

₹ 1,10,000

The correct answer is Option (2) - â‚¹ 1,10,000.

Old ratio = 3:2 (Himanshi and Nisha)
There capital were ₹80,000 and ₹50,000 respectively.

Shikha admit = 1/5th share
For 1/5th Shikha brought as capital = ₹60,000
Total capital of the firm on Shikha's capital basis = 60000 x 5
                                                                      = 300000

Total capital of the all partners = 80000 + 50000 + 60000
                                            = 190000

As total of partners capital is less than total capital of the firm on Shikha's capital base. Remaining is goodwill of the firm.

Goodwill = 300000 - 190000
             = 110000