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Question
Suhas and Vilas were partners in a firm with capitals of ₹ 4,00,000 and ₹ 3,00,000 respectively. They admitted Prabhas as a new partner for `1/5`th share in future profits. Prabhas brought ₹ 2,00,000 as his capital. Prabhas’ share of goodwill will be:
Options
₹ 1,00,000
₹ 10,00,000
₹ 9,00,000
₹ 20,000
MCQ
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Solution
₹ 20,000
Explanation:
Hidden Goodwill = Capital of Firm (on the basis of Prabhas’s Capital) – Net Worth
= (₹ 2,00,000 × 5) – [₹ 2,00,000 + ₹ 4,00,000 + ₹ 3,00,000]
= 10,00,000 – 9,00,000
= ₹ 1,00,000
Prabha’s Share in Goodwill = 1,00,000 × `1/5`
= ₹ 20,000
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