Question

Hemant and Naman are partners in a firm sharing profits in the ratio of 3:2. Their capitals were Rs. 80,000 and Rs. 50,000 respectively. They admitted Samrat on Jan. 1, 2025 as a new partner for 1/5 share in the future profits. Samrat brought Rs. 60,000 as his capital. Calculate the value of goodwill of the firm.

• A. Rs. 1,20,000
• B. Rs. 1,10,000
• C. Rs. 1,30,000
• D. Rs. 1,40,000

Hint:

When calculating goodwill on admission, compare the firm's implied total capital (from new partner's contribution) with the actual capital. The difference is goodwill.

Answer 1

The Correct Option is A

Step 1: Calculate total capital of old partners.
Hemant's capital = Rs 80,000.
Naman's capital = Rs 50,000.
Total old capital = Rs 1,30,000 (80,000 + 50,000).

Step 2: Determine firm's total capital based on Samrat's share.
Samrat's capital for 1/5 share = Rs 60,000.
Firm's total capital = Rs 3,00,000 (60,000 × 5).

Step 3: Calculate the firm's goodwill.
Expected total capital = Rs 3,00,000.
Actual combined capital (Hemant + Naman + Samrat) = Rs 1,90,000 (1,30,000 + 60,000).
Goodwill = Rs 1,10,000 (3,00,000 – 1,90,000).

Step 4: Verify calculations.
Goodwill is the excess of total capital over actual capital.
Recalculation: Total firm capital = Rs 3,00,000.
Actual capital = Hemant (80,000) + Naman (50,000) + Samrat (60,000) = Rs 1,90,000.
Goodwill = Rs 1,10,000 (3,00,000 – 1,90,000). Correct goodwill value = Rs 1,10,000.

Final Answer: \[\boxed{\text{Rs. 1,10,000}}\]