Question

A and B are partners sharing profit and loss in the ratio of 3:2, whose capital account balance was rs. 60000 and rs. 40000 . they admit C into the firm for 1 /6th share, who contribute rs. 30000 as his capital. find out:
a) total capital of the firm based on new partner's capital contribution
b) based on the above statement, ascertain the value of goodwill, if any.​

Answer 1

Answer:

1. 180000 capital of firm

1. 50000 firm goodwill

Answer 2

Given :

Ratio Of Old Partners - 3 : 2

Share Of C - ⅙

Capital Of A - 60,000

Capital of B - 40,000

Capital Of C - 30,000

To Find :

Total Capital Of Firm

Value Of Goodwill

Solution :

a) Total Capital of Firm :

C's Capital × ⁶/ 1

= 30,000 × ⁶ / 1

= 1,80,000

Total Capital Of Firm : 1,80,000

b) Goodwill

There is no goodwill mentioned in this question, If it is mentioned,

C's Capital × C's Share

= 30,000 × ⅙

= 5,000

Goodwill Of Firm : 5,000