Question

Moksh and Pran were partners in a firm sharing profits and losses in the ratio of 1 : 2. Their capitals were ₹ 5,00,000 and ₹ 3,00,000, respectively. They admitted Tushar as a new partner on 1st April, 2024, for a `1/4`th share in future profits. Tushar brought ₹ 4,00,000 as his share of capital. The goodwill of the firm on Tushar’s admission will be:

Options

• ₹ 16,00,000

• ₹ 4,00,000

• ₹ 8,00,000

• ₹ 12,00,000

Answer 1

₹ 4,00,000

Explanation:

Tusar’s share = `1/4`

Capital brought in by Tushar = ₹ 4,00,000

Total capital of new firm (based on Tushar’s capital) = `4,00,000 xx 4/1`

= ₹ 16,00,000

Combined capital of all partners = Moksh’s capital + Pran’s capital + Tushar’s capital

= 5,00,000 + 3,00,000 + 4,00,000

= ₹ 12,00,000

Value of Firm’s Goodwill (Hidden Goodwill) = Total capital of new firm − Combined capital of all partners

= 16,00,000 − 12,00,000

= ₹ 4,00,000