Surya and Star are partners in a firm sharing profits in the ratio of 3 : 2. Their Capitals were ₹2,40,000 and ₹1,50,000 respectively. They admitted Moon on April 01, 2022 as a new partner for 1/6 share in future profit. Moon brought ₹1,80,000 as his Capital. Calculate Moon's share of Goodwill.
Answer & explanation
Correct answer: option 4
The correct answer is option (4)- ₹85,000.
Moon's share = 1/6th
Capital brought by him = ₹1,80,000
Capital of the firm on basis of Moon's share = 1,80,000 x 6/1
= 10,80,000
Actual capital of the firm = 2,40,000 + 1,50,000 + 1,80,000
= ₹5,70,000
Hidden goodwill of the firm = 10,80,000 - 5,70,000
= ₹5,10,000
Share of Moon's in goodwill = 5,10,000 x 1/6
= ₹85,000