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:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) - ₹ 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 = 60,000 x 5
= 3,00,000
Total capital of the all partners = 80,000 + 50,000 + 60,000
= 1,90,000
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 = 3,00,000 - 1,90,000
= 1,10,000