Question

X and y are partner in the firm with capital 180000 and 200000.Z was admitted for 1/3 shate in profit and bring 340000 as capital calculate the amount of goodwill

Answer 1

The correct answer is Rs. 3,00,000.

Based on Z'S Share,

Total Capital of the new Firm = 3,40,000 × 3/1

                                                = Rs. 10,20,000

Value of Goodwill=                           10,20,000

less:X's Capital (1,80,000)

       Y's Capital (2,00,000)

       Z's Capital (3,40,000)               (7,20,000)  

                                                          3,00,000    

Therefore, the amount of Goodwill is Rs. 3,00,000.