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Question : H and S share Profit & Loss equally. Their capitals were Rs.1,20,000 and Rs. 80,000 respectively. There was also a balance of Rs. 30,000 in General reserve and revaluation  loss  amounted to Rs. 15,000. They admit friend T with 1/5 share. T brings Rs.90,000 as capital. Calculate the amount of goodwill of the firm.

Option 1: Rs. 85,000

Option 2: Rs. 1,45,000 

Option 3: Rs. 20,000

Option 4: None of the above 


Team Careers360 17th Jan, 2024
Answer (1)
Team Careers360 18th Jan, 2024

Correct Answer: Rs. 1,45,000


Solution : Answer = Rs. 1,45,000

Goodwill = 4,50,000 (90,000 x 5) - (1,20,000 + 80000 + 30,000 - 15000 + 90,000)

= 4,50,000 - 305000 = 1,45,000.
Hence, the correct option is 2.

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