X and Y are partners sharing profits in the ratio of 1:1. They admit Z for 1/5 th share who contributed ₹25,000 for his share of goodwill. The total value of goodwill of the firm will be :
A. ₹ 2,50,000
B. ₹ 50,000
C. ₹ 1,00,000
D. ₹ 1,25,000
Answer:C
X and Y are partners sharing profits in the ratio of 1:1. They admit Z for 1/5 th share who contributed ₹25,000 for his share of goodwill. The total value of goodwill of the firm will be :
A. ₹ 2,50,000 B. ₹ 50,000 C. ₹ 1,00,000 D. ₹ 1,25,000