Partnership

Admission

Medium

common

A and B are partners sharing profits equally with capitals of Rs 45,000 each. They admitted C as a new partner for 1/3rd share in the profit. C bring Rs 60,000 as his capital. Find the goodwill of the firm.

Rs 1,80,000

Rs 1,50,000

Rs 90,000

Rs 30,000

✅ Correct Option: 4

C is admitted for $\frac{1}{3}$ share and brings Rs 60,000 as capital.

If C's capital of Rs 60,000 represents $\frac{1}{3}$ share, then:

Total value of the firm = Rs 60,000 × 3 = Rs 1,80,000

Now, let's find the actual combined capital:

A's capital = Rs 45,000

B's capital = Rs 45,000

C's capital = Rs 60,000

Total actual capital = Rs 1,50,000

The goodwill is the difference between the firm's total value (based on C's contribution) and the actual capital:

Goodwill = Rs 1,80,000 - Rs 1,50,000 = Rs 30,000

This Rs 30,000 represents the hidden value (goodwill) of the existing firm that C is paying for along with his capital contribution. When C pays Rs 60,000 for $\frac{1}{3}$ share, he's essentially valuing the firm at Rs 1,80,000, but the tangible capital is only Rs 1,50,000. The difference of Rs 30,000 is the firm's goodwill.

2026: 23 May Shift 2

Arrange the following steps in sequence for calculation of goodwill using Super Profit Method.

A. Calculate the average profit.

B. Calculate the normal profit on the firm's capital on the basis of the normal rate of return.

C. Calculate the super profits by deducting normal profit from the average profits.

D. Calculate goodwill by multiplying the super profits by the given number of years' purchase.

Choose the correct answer from the options given below:

2023: 11 June Shift 3

Hidden Goodwill is :

2026: 12 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Goodwill	(I) Amount brought by new partner to compensate old partners
(B) Sacrificing ratio	(II) Advantage of reputation, enabling firm to earn super profits
(C) New profit sharing ratio	(III) Ratio in which old partner give up their share
(D) Premium for Goodwill	(IV) Ratio after reconstitution of partnership

Choose the correct answer from the options given below:

2026: 11 May Shift 1

Amar and Barun are partners, sharing profits in the ratio of 3:1. Charu is admitted into the firm for 1/5 share of profits. Charu brought in Rs. 30,000 in respect of her capital. The capitals of old partners Amar and Barun, after all adjustments relating to goodwill, revaluation of assets and liabilities, etc., are Rs. 65,000 and Rs. 15,000 respectively. It is agreed that partners' capitals should be according to the new profit sharing ratio. Calculate the amount brought in/withdrawn by Amar to adjust his capital according to the new profit sharing ratio.

2025: 22 May Shift 1

The ratio in which the old partners agree to give their share of profit in favor of the incoming partner is called:

2025: 30 May Shift 1

Rohit and Mohit are partners in a firm sharing profits in the ratio 5:3. They admitted Bijoy as a new partner for 1/7 share in the profit. The new profit sharing ratio will be 4:2:1. Calculate the sacrificing ratio of Rohit and Mohit

A and B are partners sharing profits equally with capitals of Rs 45,000 each. They admitted C as a new partner for 1/3rd share in the profit. C bring Rs 60,000 as his capital. Find the goodwill of the firm.

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