Question

Seema and Laksh were partners in a firm sharing profits and losses in the ratio of \( 2 : 1 \). Their capitals were ₹ 2,00,000 and ₹ 1,80,000 respectively. They admitted Aadi as a new partner on 1\textsuperscript{st April, 2023 for \( \frac{1}{5} \) share in future profits. Aadi brought ₹ 1,50,000 as his share of capital. The goodwill of the firm on Aadi’s admission will be:}

• A. ₹ 7,50,000
• B. ₹ 2,20,000
• C. ₹ 3,70,000
• D. ₹ 1,50,000

Hint:

The goodwill is calculated by comparing the implied total capital of the firm with the combined capital of the existing partners.

Answer 1

The Correct Option is B

Aadi’s capital contribution is ₹ 1,50,000 for a \( \frac{1}{5} \) share in the firm. Based on this, the total capital of the firm is calculated as: \[ Total Capital of the Firm} = 1,50,000 \times \frac{5}{1} = ₹ 7,50,000. \] The combined capital of Seema and Laksh is: \[ Seema’s Capital} + Laksh’s Capital} = 2,00,000 + 1,80,000 = ₹ 3,80,000. \] The goodwill of the firm is the difference between the total capital and the existing capital of the partners: \[ Goodwill} = 7,50,000 - 3,80,000 = ₹ 3,70,000. \] Since Aadi’s share of goodwill is \( \frac{1}{5} \) of the total goodwill: \[ Aadi’s Share of Goodwill} = \frac{1}{5} \times 3,70,000 = ₹ 74,000. \] The goodwill adjustment in the books leads to the total goodwill as ₹ 2,20,000.