Can we find goodwill when capital of old partners are given and new partner share is given?

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Answer

Yes, it's hidden goodwill case, we can and it's pretty easy but let me tell you one thing that CBSE has removed this type of hidden goodwill case from our syllabus, so this won't be coming in board exams...

Answer

Yes, we can find hidden GoodwillCalculation of Hidden GoodwillWhen the value of Goodwill is not specifically given in the question than the value of goodwill is calculated on the basis of the capital of the firm which is as follow:Step I:    Calculate the total capital of the firm on the basis of the capital brought by the new partner. It is calculated as follow:Total Capital of firm = Capital of new partner × 1/New partner shareStep II:   Find out the combined capital of all the partners. It is calculated as follow:Combined Capital of all Partners = Old Partners Capital + New Partner's CapitalStep III: Determine the Hidden Goodwill as under:Hidden Goodwill = Total Capital of firm - Combined Capital of all Partners

Answer

Yes, this is a case of hidden goodwill

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kritika

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i think first we need to know new partner's capital

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hidden goodwill total minus combined capital and put the share of new partner on the difference calculated above

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yes

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yes

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why is the profit and loss account balance in asset side balance sheet treated as aloss

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yes

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yes

Similar Class 12 Doubts

A and B are partners sharing the profit the ratio of 3:2. They take C as the new partner, who brings in Rs. 25,000 against capital and Rs. 10,000 against goodwill. New profit sharing ratio is 1:1:1. In what ratio will this amount will be shared among the old partners A & B.

A and B are partners. They admit C as a new partner. C contributes stock rs.30000;furniture rs.40000machinery rs.100000 and cash rs.20000 towards his capital and share of goodwill. Goodwill on the date of admission was valued at rs.180000. calculate C's share of goodwill and capital.?

A and B are partners with capital of 2600000 and 1800000. That admitted C as a partner with1/5 share in the profits of the firm. find capital and goodwill?

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Gaurav and Saurabh are partners in a firm having capital balance of Rs 90000 and Rs 60000 respectively. They admitted Mohit as a new partner for 2/7th share in the firm. What will be Mohits share of capital if he has to contribute capital in proportion to his profit sharing ratio?

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