Hem and Nem are partners in a firm sharing profits in the ratio of 3:2. Their capitals were ₹80,000 and ₹50,000 respectively. They admitted Sam on Jan 1, 2025 as a new partner for 1/5 share in the future profits. Sam brought ₹60,000 as his capital. Sam share of goodwill will be:
Answer & explanation
Correct answer: option 4
The correct answer is option 4- ₹22,000.
Sam's Capital = 60,000
Sam's Share = 1/5
Total capital of the firm on basis of Sam's share = 60,000 x 5/1
= 3,00,000
Actual total capital of the firm = Sam's capital + Hem's capital + Nem's capital
= 60,000 + 80,000 + 50,000
= 1,90,000
The difference between actual capital and capital based on Sam's share is hidden goodwill of the firm.
Goodwill = 3,00,000 - 1,90,000
= 1,10,000
Sam's share in goodwill = 1,10,000 x 1/5
= 22,000