Hem and Nem 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 Sam on Jan 1, 2025 as a new partner for 1/5 share in the future profits. Sam brought Rs. 60,000 as his capital. Sam share of goodwill will be:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Rs. 22,000
The goodwill is hidden in the capital Sam brings for his share. His capital tells us what the total capital of the firm should be; the excess of that over the actual capitals of all partners is the firm’s goodwill, and Sam’s share is 1/5 of it.
Total capital of the firm = Rs. 60,000 × 5/1 = Rs. 3,00,000
Actual capitals = Rs. 80,000 + Rs. 50,000 + Rs. 60,000 = Rs. 1,90,000
Goodwill of the firm = Rs. 3,00,000 − Rs. 1,90,000 = Rs. 1,10,000
Sam’s share of goodwill = Rs. 1,10,000 × 1/5 = Rs. 22,000
NCERT (2026-27 edition):
|
