How to calculate goodwill?

A and B are partners Profit and Losses in ratio 3:2. C is admitted for 1/5Th share and brings Rs.10,000 As capital and necessary amount For his share of goodwill. The goodwill of entire firm is valued Rs.40,000. . . Goodwill brought by C is? plz explain.
Replies (3)

in this case goodwill brought by c will be one fifth of total goodwill i.e. 8000. 

the reason is afterwards at a later point of time when the firm is sold all the assets including goodwill will be shared among the partners in profit sharing ratio. so at that time he will get one fifth of goodwill i.e. 8000. but  the total goodwill(40000) is not  generated by c but generated by A and B alone. so since  C will get goodwill amount in the future, he is now giving that amount to enter into the firm

                                                                                                                 regards.

                                                                                                                VIJAY

Originally posted by : Shubham kumar
A and B are partners Profit and Losses in ratio 3:2. C is admitted for 1/5Th share and brings Rs.10,000 As capital and necessary amount For his share of goodwill. The goodwill of entire firm is valued Rs.40,000. . . Goodwill brought by C is? plz explain.

C is the new partner sharing 1/5th share. 
hence, Total capital of the partnership concern = 10000*5/1 = wich is equal to Rs.50000 .
and on the other side total goodwill of firm is = Rs.40000. 
so, therefore, 
G/W brought by C is = 50000-40000

                                      =Rs.10000 . 

Regards, 
Ankit Gupta

i agree with vijay bhasker he is correct that the amount of goodwill brought in by C is Rs 8,000. and Rs  2,000(i.e. 10,000-8000,)  shall be his share of Capital 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
09 September 2026
Chartered Accountant

Aviv Global Private Limited

Ahmedabad

CA

View Details
Company
Featured 12 September 2026
Assistant Manager - Finance & Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Article Assistant

SGNG & Associates

New Delhi

CA Inter

View Details
Company
17 September 2026
Chartered Accountant

Dass Gupta & Associates

Gurgaon

CA

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details
Company
26 September 2026
Chartared Accountant

pushpganga ventures

Pune

CA

View Details
Company
Featured 11 September 2026
Audit Executive

RBSM Corporate Advisors Private Limited

Pune

CA

View Details
Company
22 September 2026
Account Assistant

Chirag P Shah & Co. Chartered Accountant

Pune

B.Com

View Details