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X and y are partner sharing profit in the ratio 1:1 . They admitt z for 1/5 share who contributed 25000 for his share of goodwill . The total value of goodwill of firm is?
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X and y are partner sharing profit in the ratio 1:1 . They admitt z fo...
Calculation of Goodwill for the Firm
Given Information:
- X and Y partners share profit in the ratio 1:1
- Z is admitted for 1/5 share
- Z contributed 25000 for his share of goodwill
Solution:
Let the total value of goodwill be G.
As per the given information,
- X and Y share profit in the ratio 1:1
- Z is admitted for 1/5 share
Therefore, the new profit sharing ratio will be:
- X:Y:Z = 1:1:1/5 = 5:5:1
Hence, the share of X and Y will be:
- X's share = 5/11
- Y's share = 5/11
Since Z contributed 25000 for his share of goodwill, we can calculate the total value of goodwill as follows:
- Goodwill contributed by X = X's share * G = (5/11)*G
- Goodwill contributed by Y = Y's share * G = (5/11)*G
- Goodwill contributed by Z = 25000
Therefore, the total value of goodwill can be calculated as:
- G = (Goodwill contributed by X + Goodwill contributed by Y + Goodwill contributed by Z)
Substituting the values, we get:
- G = [(5/11)*G] + [(5/11)*G] + 25000
- G = (10/11)*G + 25000
- (1/11)*G = 25000
- G = 25000*11 = 275000
Conclusion:
Therefore, the total value of goodwill for the firm is Rs. 275000.
Community Answer
X and y are partner sharing profit in the ratio 1:1 . They admitt z fo...
Z is admitted for 1/5th share. He is bringing Rs. 25000 for his share of goodwill.
Value of goodwill of the firm = 25000 x 5/1
= Rs. 125000
Therefore, D is the correct option.
Value of goodwill of the firm = 25000 x 5/1
= Rs. 125000
Therefore, D is the correct option.
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X and y are partner sharing profit in the ratio 1:1 . They admitt z for 1/5 share who contributed 25000 for his share of goodwill . The total value of goodwill of firm is?
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X and y are partner sharing profit in the ratio 1:1 . They admitt z for 1/5 share who contributed 25000 for his share of goodwill . The total value of goodwill of firm is? 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 X and y are partner sharing profit in the ratio 1:1 . They admitt z for 1/5 share who contributed 25000 for his share of goodwill . The total value of goodwill of firm is? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X and y are partner sharing profit in the ratio 1:1 . They admitt z for 1/5 share who contributed 25000 for his share of goodwill . The total value of goodwill of firm is?.
X and y are partner sharing profit in the ratio 1:1 . They admitt z for 1/5 share who contributed 25000 for his share of goodwill . The total value of goodwill of firm is? 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 X and y are partner sharing profit in the ratio 1:1 . They admitt z for 1/5 share who contributed 25000 for his share of goodwill . The total value of goodwill of firm is? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X and y are partner sharing profit in the ratio 1:1 . They admitt z for 1/5 share who contributed 25000 for his share of goodwill . The total value of goodwill of firm is?.
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