Question

admission of chapter hidden goodwill topic

Answer 1

Total net capital of the firm after Z admission

X 3lac

Y 1.5 lac

Z 3 lac

Reserve 1.6 lac

P/L 40000

Less: Adv. exp. 10000

Total 940000

Total capital as per reverse calculation of Z capital and his share

3 lac x 5/1 = 15 lac

Hidden goodwill= 15 lac less 9.4 lac

5.6 lac.