Question

A and B are partners in a firm. They admit C as a partner with 1/5th share in the profits of the firm.

C brings ₹ 4,00,000 as his share of capital. Calculate the value of C’s share of Goodwill on the

basis of his capital, given that the combined capital of A and B after all adjustments is ₹ 10,00,000

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Answer 1

Answer:

let share of profit of both partners=1

share of new partner =1

so remaining share=1-1\5

=4/5so total capital of firm =5/4×1000000=1250000

c share of goodwill =1250000×1/5=25000