Ram and Shyam are partners in a firm with capital of ₹ 4,80,000 and ₹ 3,10,000, respectively. They…
Since Ganesh brings ₹ 3,00,000 as capital for a 1/4th share of profit, the implied total capital of the new firm is ₹ 3,00,000 × 4 = ₹ 12,00,000. The actual combined capital…
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Ram and Shyam are partners in a firm with capital of ₹ 4,80,000 and ₹ 3,10,000, respectively. They admitted Ganesh as a partner with 1/4th share of profit. Ganesh brings ₹ 3,00,000 as his capital. Ganesh’s share of goodwill will be
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Correct answer B
Since Ganesh brings ₹ 3,00,000 as capital for a 1/4th share of profit, the implied total capital of the new firm is ₹ 3,00,000 × 4 = ₹ 12,00,000. The actual combined capital of all three partners (Ram ₹ 4,80,000 + Shyam ₹ 3,10,000 + Ganesh ₹ 3,00,000) is ₹ 10,90,000. Hence, the firm's hidden goodwill is ₹ 12,00,000 - ₹ 10,90,000 = ₹ 1,10,000, and Ganesh's 1/4th share of goodwill is ₹ 1,10,000 / 4 = ₹ 27,500.
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UGC NET Commerce