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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
A and B are partners in a firm with capitals of ₹60,000 and ₹1,20,000 respectively. They decide to admit C into the partnership for a 1/4th share in the future profits. C is to bring in ₹70,000 as his capital. Calculate the amount of goodwill.
Total capital of the firm after C’s admission = ₹60,000 + ₹1,20,000 + ₹70,000 = ₹2,50,000.
Capitalised value of the firm (based on C’s share) = ₹70,000 × 4/1 = ₹2,80,000.
Goodwill = Capitalised Value – Actual Capital = ₹2,80,000 – ₹2,50,000 = ₹30,000.
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Chapter 4 Q.37 - Admission of a Partner", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 4 - Admission of a Partner.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
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