Question

5 )Himanshu and Naman share profits & losses equally. Their capitals were Rs.1,20,000 and Rs.
80,000 respectively. There was also a balance of Rs. 60,000 in General reserve and revaluation
gain amounted to Rs. 15,000. They admit friend Ashish with 1/5 share. Ashish brings Rs.90,000
as capital. Calculate the amount of goodwill of the firm.
a.1,00,000
b. Rs. 85,000
c. Rs.20,000
d. None of the above
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Answer 1

Answer:

Explanation:

Ashish admitted in the bussiness with 1/5 share , which was 90000

Total capital of the firm as per Ashish's capital= 90,000*5/1=4,50,000

(Total capital by adding )                                                          2,90,000

(1,20,000+80,000+90,000)                                                      

Goodwill                                                                      = 3,60,000

Now the goodwill will be 3,60000

Ashish Share is 1/5

Ashish's share = 3,60,000*1/5= 72,000