Question

Amit and Sumit were partners in a firm with fixed capitals of ₹ 6,00,000 and ₹ 4,00,000 respectively. Kavi was admitted as a new partner for 1/5^th share in the profit of the firm. Kavi brought ₹ 40,000 as his share of goodwill premium and ₹ 3,00,000 as his capital. The amount of Goodwill premium credited to Sumit will be ______.

Options

• ₹ 20,000

• ₹ 24,000

• ₹ 16,000

• ₹ 40,000

Answer 1

Amit and Sumit were partners in a firm with fixed capitals of ₹ 6,00,000 and ₹ 4,00,000 respectively. Kavi was admitted as a new partner for 1/5^th share in the profit of the firm. Kavi brought ₹ 40,000 as his share of goodwill premium and ₹ 3,00,000 as his capital. The amount of Goodwill premium credited to Sumit will be ₹ 20,000.

Explanation:

Amount credited to Sumit =`40,000 xx 1/2 = ₹ 20,000`    ...(Sacrificing Ratio = 1 : 1)