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?

₹1,10,000

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