A b and c are equal partners. D was addmitted for one fourth share. D bring 20000 capital and 5000 being half of the premium for goodwill.The value of good will of firm
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D brings his half share of goodwill, which is 5,000.
So, D's share of goodwill is 5,000 x 2 = 10,000.
And D's share is 1/4th in the firm.
Here, 1/4th is 10,000. Therefore, total Goodwill is 10,000 x 4/1 = 40,000.
So, D's share of goodwill is 5,000 x 2 = 10,000.
And D's share is 1/4th in the firm.
Here, 1/4th is 10,000. Therefore, total Goodwill is 10,000 x 4/1 = 40,000.
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