CameraIcon
CameraIcon
SearchIcon
MyQuestionIcon


Question

A and B are partners in the ratio of 2 : 1. They admit C for 1/4 share who contributes Rs. 30,000 for his share of goodwill. The total value of the goodwill of the firm is _________.


A
Rs.30,000
loader
B
Rs.90,000
loader
C
Rs.1,20,000
loader
D
Rs.1,50,000
loader

Solution

The correct option is D $$Rs. 1,20,000$$
Old ratio (A and B) = 2 : 1
C is admitted for 1/4th share of profit
For 1/4 share C bring Rs. 30000 for goodwill
Therefore, goodwill of the firm = C's share of goodwill * Reciprocal of C's profit share
Total goodwill = Rs. 30000 * (4/1) = Rs. 120000

Fundamentals of Accounting and Auditing

Suggest Corrections
thumbs-up
 
0


similar_icon
Similar questions
View More


similar_icon
People also searched for
View More



footer-image