Question

X and Y are partner's with capital of 16000 and 12000 respectively. They admit Z as a partner with 1/4 share in profits of the firm. Z brings 16000 as his capital? Find the value of goodwill

Answer 1

Answer:

The value of goodwill is Rs. 20,000.

Explanation:

Given Data:  

X’s capital = Rs. 16000

Y’s capital = Rs. 12000

X and Y takes Z as their partner with a share of ¼ share  

Z brings a capital of Rs. 16000

To find: value of goodwill

The Actual capital of the firm after Z joined X and Y  

= X’s capital + Y’s capital + Z’s capital

= 16000 + 12000 + 16000

= Rs. 44,000

The capitalized value of the firm as per Z’s share  

= 16000 * 4/1  

= 64,000

Therefore,

Goodwill = Capitalized value of the firm – Actual capital of the firm

  = Rs. 64,000 – Rs. 44,000

  = Rs. 20,000

Answer 2

Answer:

Answer =₹20,000

I hope this will help you and you will get your answer.