Question

Himanshu and Naman share profits & losses equally. Their capitals were Rs.1,20,000 and Rs. 80,000 respectively. There was also a balance of Rs. 60,000 in General reserve and revaluation gain amounted to Rs. 15,000. They admit friend Ashish with 1/5 share. Ashish brings Rs.90,000 as capital. Calculate the amount of goodwill of the firm.

Answer 1

Total capital of the firm as per Ashish's capital= 90,000*5/1=4,50,000

(-) Total capital by adding                                                           2,90,000

(1,20,000+80,000+90,000)                                                      

Hidden goodwill                                                                      = 3,60,000

Ashish's share = 3,60,000*1/5= 72,000

I hope this helps

Answer 2

Answer:

450000 - (290000+ 75000) = 85000

Explanation:

85000 is goodwill of firm