UGC NET COMMERCE July 2016(Paper II) Q8

8Ram and Shyam are partners in a firm with capital of Rs.4,80,000 and Rs.3,10,000, respectively. They admitted Ganesh as a partner with 1/4th share of profit. Ganesh brings Rs.3,00,000 as his capital. Ganesh’s share of goodwill will be:

Option : B
Explanation : On the basis of Ganesh’s capital, total capital of the firm should be 12,00,000 (300000 × 4).
But the actual capital of the firm is 1090000.
Hence, goodwill = 1200000 – 1090000 = 110000
∴ Ganesh’s Share of Goodwill

Forgot your password?

I agree with the Terms.