Hema & Seema were Partner in a firm sharing profits in the ratio of 3:1.Their Capitals Were Rs.4,00,000 and Rs.1,00,000/- respectively. They Admitted Dimple on 1st April 2021 for 1/5th share in future profits. Dimple Brought Rs.2,00,000/-as her capital. The Dimple’s share of goodwill is
Answers
Given:
- Hema and Seema are partners in a firm, sharing profits and losses in the ratio 3:1.
- Hema's and Seema's capitals were Rs 4,00,000 and Rs 1,00,000 respectively.
- Dimple was admitted into the firm for 1/5th share in profits.
- Dimple brought in Rs 2,00,000 as capital.
To find: Dimple's share in goodwill.
Answer:
This is a situation of hidden goodwill.
The capital of the new firm must be calculated first.
Capital of the new firm = Capital of the new partner × The reciprocal of his share
- Capital of the new partner = Rs 2,00,000
- Reciprocal of the new partner's share = 5/1
Capital of the new firm = Rs 2,00,000 × 5/1 = Rs 10,00,000
The sum total of the capital of all the partners must now be deducted from the capital of the new firm to find the goodwill of the firm.
Sum total of the capital of all the partners = Rs 4,00,000 + Rs 1,00,000 + Rs 2,00,000 = Rs 7,00,000
Goodwill = Capital of the new firm - Sum total of the capital of all the partners
Goodwill = Rs 10,00,000 - Rs 7,00,000
Goodwill = Rs 3,00,000
Dimple's share of goodwill = Goodwill of the firm × Dimple's share
Dimple's share of goodwill = Rs 3,00,000 × 1/5
Dimple's share of goodwill = Rs 60,000
Therefore, Dimple's share of goodwill is Rs 60,000.