Question

Ram and Shyam were partners in a firm sharing profits and losses in the ratio of 5 : 3. Mohan was admitted as a new partner for \( \frac{1}{5} \)th share in the profits of the firm. Mohan brought ₹ 2,50,000 as his share of capital and ₹ 2,00,000 as his share of goodwill premium. The value of the firm’s goodwill was :

• A. ₹ 2,00,000
• B. ₹ 4,50,000
• C. ₹ 12,50,000
• D. ₹ 10,00,000

Hint:

To calculate total goodwill when a new partner brings his share of goodwill, divide the premium amount by the partner’s share.

Answer 1

The Correct Option is D

Mohan's profit share is \( \frac{1}{5} \).
Mohan contributed ₹ 2,00,000 as goodwill premium.
This ₹ 2,00,000 represents his \( \frac{1}{5} \) share of the firm's total goodwill.
Therefore, the Total Goodwill of the firm is calculated as \( \frac{2,00,000}{1/5} = 2,00,000 \times 5 = ₹ 10,00,000 \). Final Answer: ₹ 10,00,000