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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 1/4th 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
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Solution
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 1/4th 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 ₹ 4,00,000.
Explanation:
Tusar’s share = `1/4`
Capital brought in by Tushar = ₹ 4,00,000
Total capital of New firm = `4,00,000 xx 4/1`
= ₹ 16,00,000
Based on Tushar’s share:
Capital of All Partners = 5,00,000 + 3,00,000 + 4,00,000
= ₹ 12,00,000
Value of Firm’s Goodwill = Total Capital of New Firm − Capital of All Partners
= 16,00,000 − 12,00,000
= ₹ 4,00,000
