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:

₹1,10,000

The correct answer is Option (3) - ₹1,10,000.

Old ratio = 3:2 (Hem and Nem)
Sam admit = 1/5th share

Sam's capital = 60000
On basis of Sam's capital total capital of the firm = 60000 x 5
                                                                       = 300000

Capital of Hem and Nem = 80000 & 50000
Capital of all 3 partners = 80000 + 50000 + 60000
                                   = 190000

Goodwill = 300000 - 190000
             = 110000