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Valuation of goodwill in admitting new partner

CPT 3039 views 5 replies

A and B are partners with Capitals of 10,000 and 20,000 respectively and sharing profits equally. They admitted C as their third partner with one-fourth's of profits of the firm on the payment of 12,000. The amount of hidden goodwill is:

a.)6,000

b.)10,000

c,)8,000

d.)none of the above

This is a question in CPT material sent from ICAI. The answer was given as A i.e. 6000. please explain how to solve this problem

Replies (5)

Total amount of capital= 12000*4= 48000

 Less: share of partners

                   --------A   10000

                   --------B   20000

                   --------C   12000          (42000)

                                                     6000

agree wd sumit....the total capital is 48,000 nd capital of ol partner r given..jst deduct it from total capital nd if sumthng left dat is considrtn against gudwil...
x and y are partner sharing profit in ratio 5:3.they admit z for 1/5 of share of for which he paid 120000 against capital and 60000aginst goodwill .find the capital balence of each partner taking z as base capital

how to ask the doubt?

i think x:300000,y:180000,z:120000


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