Advertisements
Advertisements
Question
A and B are partners in a firm. They admit C as a partner with a `1/5`th share in the profits of the firm. C brings ₹ 4,00,000 as his share of capital. Calculate the value of C’s share of Goodwill on the basis of his capital, given that the combined capital of A and B after all adjustments is ₹ 10,00,000.
Numerical
Advertisements
Solution
| Particulars | Amount (₹) |
| Total Capital as per C’s Share `(4,00,000 xx 5/1)` |
20,00,000 |
| Less: Actual Capital of A, B, C (10,00,000 + 4,00,000) |
14,00,000 |
| Value of Firm’s Goodwill | 6,00,000 |
C’s share of Goodwill = `6,00,000 xx 1/5`
= ₹ 1,20,000
shaalaa.com
Is there an error in this question or solution?
