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 for 1/5 share and he brought ₹60,000 as his Capital. Goodwill of the firm will be:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) - ₹1,10,000.
Old ratio = 3:2 (Hem and Nem)
Sam admit = 1/5th share
Sam's capital = 60,000
On basis of Sam's capital total capital of the firm = 60,000 x 5
= 3,00,000
Capital of Hem and Nem = 80,000 & 50,000
Capital of all 3 partners = 80,000 + 50,000 + 60,000
= 1,90,000
Goodwill = 3,00,000 - 1,90,000
= 1,10,000