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