Question

X and Y are equal partners .They had credit balances of capital at Rs.1,80,000 and Rs.1,20,000 respectively. Z is admitted for 1/5 share and Z brings Rs.1,40,000 for his capital. Calculate the goodwill of the firm
a)Rs.2,50,000
b)Rs.2,00,000
c)Rs.2,60,000​

Answer 1

Answer:

Goodwill is calculated according to new partner capital account

Z capital 140000 for 1/5 share according to his total capital of firm 140000×5=700000

total capital of firm =. 700000

(

-) capitals of all partners = 440000

(180000+120000+140000)

goodwill of firm =.(700000-440000)260000

option C is correct