Hem and Nem 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 Sam on Jan. 1, 2017 as a new partner for 1/5 share in the future profits. Sam brought Rs. 60,000 as his capital. Calculate the value of the goodwill of the firm if Sam brings his share of goodwill in Cash:

Sam is admitted for 1/5 share and brings Rs. 60,000 as capital.

Using the capitalization method to determine the firm's total value:

If Sam's capital of Rs. 60,000 represents 1/5 share, then:

Total capitalized value of the firm = $\frac{60,000}{1/5}$ = 60,000 × 5 = Rs. 3,00,000

Combined capital of all partners:

• Hem's capital: Rs. 80,000
• Nem's capital: Rs. 50,000
• Sam's capital: Rs. 60,000
• Total capital = Rs. 1,90,000

The difference between the capitalized value and actual capital represents the firm's goodwill:

Goodwill of the firm = 3,00,000 - 1,90,000 = Rs. 1,10,000

However, since the question asks for goodwill that Sam brings (as indicated by "if Sam brings his share of goodwill in Cash"), we need to calculate Sam's share of total goodwill:

Sam's share of goodwill = 1,10,000 × $\frac{1}{5}$ = Rs. 22,000

Correct Answer: Option 3 - Rs. 22,000