1.

A and B are partners in a firm with capital of ₹ 60,000 and ₹ 1,20,000 respectively. They decide to admit C into the partnership for 1/4th share in the future profits. C is to bring in a sum of ₹ 70,000 as his capital. Calculate amount of goodwill.

Answer»

n:Actual Capital of the FIRM after ADMISSION of C                              =  A's Capital + B's Capital + CS Capital                              = 60,000 + 1,20,000 + 70,000 = 2,50,000 Capitalised value of the firm on the basis of Cs share= 70,000 x                                                                    = 2, 80, 000Goodwill = Capitalised value of the firm - Actual Capital of the firm               = 2, 80,000 - 2, 50, 000              = 30,000



Discussion

No Comment Found

Related InterviewSolutions