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A and b are partners with the capital rs. 50,000 and rs. 40,000 respectively. they share profits and losses equally. c is admitted on bringing rs. 50,000 as capital only and nothing was bought against goodwill. goodwill in balance sheet of rs. 20,000 is revalued as rs. 35,000. what will be value of goodwill in the books after the admission of c?
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A and b are partners with the capital rs. 50,000 and rs. 40,000 respec...
**Calculation of Goodwill in the Books after Admission of C:**

To determine the value of goodwill in the books after the admission of C, we need to consider the initial value of goodwill and the revaluation of goodwill.

**1. Initial Value of Goodwill:**

The initial value of goodwill is not given explicitly in the question. However, since nothing was bought against goodwill, we can assume that there was no initial value of goodwill. Therefore, the initial value of goodwill is zero.

**2. Revaluation of Goodwill:**

The question states that the goodwill in the balance sheet is revalued as Rs. 35,000. This means that the goodwill has increased in value from its original amount.

**3. Calculation of New Value of Goodwill:**

Since A and B are partners and share profits and losses equally, their capital contributions determine their profit sharing ratio. A has contributed Rs. 50,000 and B has contributed Rs. 40,000, giving them a total capital of Rs. 90,000.

C has been admitted and brought in Rs. 50,000 as capital. Therefore, the total capital after C's admission is Rs. 140,000 (Rs. 90,000 + Rs. 50,000).

To calculate the new value of goodwill, we can use the formula:

New Value of Goodwill = (Total Capital after Admission / Old Total Capital) * Old Value of Goodwill

In this case, the Old Total Capital is Rs. 90,000 and the Old Value of Goodwill is Rs. 35,000.

New Value of Goodwill = (Rs. 140,000 / Rs. 90,000) * Rs. 35,000

Simplifying the above equation, we get:

New Value of Goodwill = Rs. 54,444.44

Therefore, the value of goodwill in the books after the admission of C is Rs. 54,444.44.
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A and b are partners with the capital rs. 50,000 and rs. 40,000 respectively. they share profits and losses equally. c is admitted on bringing rs. 50,000 as capital only and nothing was bought against goodwill. goodwill in balance sheet of rs. 20,000 is revalued as rs. 35,000. what will be value of goodwill in the books after the admission of c?
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A and b are partners with the capital rs. 50,000 and rs. 40,000 respectively. they share profits and losses equally. c is admitted on bringing rs. 50,000 as capital only and nothing was bought against goodwill. goodwill in balance sheet of rs. 20,000 is revalued as rs. 35,000. what will be value of goodwill in the books after the admission of c? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A and b are partners with the capital rs. 50,000 and rs. 40,000 respectively. they share profits and losses equally. c is admitted on bringing rs. 50,000 as capital only and nothing was bought against goodwill. goodwill in balance sheet of rs. 20,000 is revalued as rs. 35,000. what will be value of goodwill in the books after the admission of c? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and b are partners with the capital rs. 50,000 and rs. 40,000 respectively. they share profits and losses equally. c is admitted on bringing rs. 50,000 as capital only and nothing was bought against goodwill. goodwill in balance sheet of rs. 20,000 is revalued as rs. 35,000. what will be value of goodwill in the books after the admission of c?.
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