Question

C brought the following towards his capital and goodwill share for 1/4th share: machinery ₹200000, stock ₹1,20,000, laptop ₹80000 and cash ₹60000. if his capital is ₹3,60,000 the goodwill of the firm will be: a) ₹1,00,000. b) ₹4,00,000 c) ₹2,00,000. d) ₹5,00,000​

Answer 1

Answer:

b) 400000

Explanation:

s. assets a/c dr 460000

to c's capital a/c 360000

(bal fig.)to premium for goodwill 100000

now, C's goodwill for 1/4 share is 100000

firms goodwill = 100000*4 = 400000