A and B are partners in a firm. They admit C with 1/5th share in the profits of the firm. C brings Rs.4,00,000 as his share of capital. Find the value of C’s share of Goodwill on the basis of his capital ,given that the combined capital of A and B after all Adjustments is Rs.10,00,000.
A. Rs.6,00,000
B. Rs.1,20,000
C. Rs.1,50,000
D. Rs.2,80,000
Answer:B
A and B are partners in a firm. They admit C with 1/5th share in the profits of the firm. C brings Rs.4,00,000 as his share of capital. Find the value of C’s share of Goodwill on the basis of his capital ,given that the combined capital of A and B after all Adjustments is Rs.10,00,000.
A. Rs.6,00,000 B. Rs.1,20,000 C. Rs.1,50,000 D. Rs.2,80,000