Question

A and B are partners in a firm with capitals of Rs5,00,000 each. They admit C as a partner with 1/4th share in the profits of the firm . C brings in Rs8,00,000 as his share of capital. The profits and loss account showed a credit balance of Rs4,00,000 as on the date of his admission. The value of hidden goodwill will be (a) Rs14,00,000 (b) Rs18,00,000 (c) Rs10,00,000 (d) None of these

Answer 1

i think option A is right