Question

Seema and Laksh were partners in a firm sharing profits and losses in the ratio of 2:1. Their capitals were ₹ 2,00,000 and ₹ 1,80,000 respectively. They admitted Aadi as a new partner on 1\textsuperscript{st April, 2023 for \(\frac{1}{5}\) share in future profits. Aadi brought ₹ 1,50,000 as his share of capital. The goodwill of the firm on Aadi’s admission will be:}

• A. ₹ 7,50,000
• B. ₹ 2,20,000
• C. ₹ 3,70,000
• D. ₹ 1,50,000

Hint:

Goodwill on admission is calculated as the difference between the implied total capital (based on the new partner’s contribution) and the total combined capital of the existing partners and the new partner.

Answer 1

The Correct Option is B

1. The firm's total capital, determined by Aadi's contribution, is calculated as follows: \[ \text{Total Capital} = ₹ 1,50,000 \div \frac{1}{5} = ₹ 7,50,000. \] 2. The combined capital of the existing partners amounts to ₹ 2,00,000 + ₹ 1,80,000 = ₹ 3,80,000. 3. The firm's goodwill is determined by subtracting the combined existing partners' capital and Aadi's capital from the total capital: \[ \text{Goodwill} = \text{Total Capital} - \text{Existing Partners’ Capital} - \text{Aadi's Capital} = ₹ 7,50,000 - ₹ 3,80,000 - ₹ 1,50,000 = ₹ 2,20,000. \]