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Madhu and Neha were partners in a firm sharing profits and losses in the ratio of 3:5. Their fixed capitals were ₹4,00,000 and ₹6,00,000 respectively. On 1st Jan, 2016, Tina was admitted as a new partner for 1/4th share in the profits. Tina acquired her share of profit from Neha. Tina brought ₹4,00,000 as her capital which was to be kept fixed like the capitals of Madhu and Neha. Calculate the goodwill of the firm on Tina's admission and choose the correct option.
- a)₹50,000
- b)₹2,00,000
- c)₹20,000
- d)₹14,00,000
Correct answer is option 'B'. Can you explain this answer?
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Verified Answer
Madhu and Neha were partners in a firm sharing profits and losses in t...
Total capital of the firm=₹4,00,000×4 = ₹16,00,000
Net worth = ₹4,00,000+ ₹6,00,000+₹4,00,000 = ₹14,00,000
Hidden goodwill = ₹16,00,000− ₹14,00,000 = ₹2,00,000
Net worth = ₹4,00,000+ ₹6,00,000+₹4,00,000 = ₹14,00,000
Hidden goodwill = ₹16,00,000− ₹14,00,000 = ₹2,00,000
Most Upvoted Answer
Madhu and Neha were partners in a firm sharing profits and losses in t...
Given:
- Madhu and Neha are partners in a firm sharing profits and losses in the ratio of 3:5.
- Madhu's fixed capital is 4,00,000 and Neha's fixed capital is 6,00,000.
- Tina is admitted as a new partner with 1/4th share in the profits.
- Tina acquires her share of profit from Neha.
- Tina brings 4,00,000 as her capital, which is to be kept fixed like the capitals of Madhu and Neha.
To Find:
The goodwill of the firm on Tina's admission.
Solution:
Goodwill is the value of reputation and customer loyalty that a business has built up over time. It is an intangible asset that represents the ability of a firm to earn greater profits than the value of its tangible assets alone.
Step 1: Calculate the total capital of the firm before Tina's admission:
Madhu's capital = 4,00,000
Neha's capital = 6,00,000
Total capital before Tina's admission = Madhu's capital + Neha's capital
= 4,00,000 + 6,00,000
= 10,00,000
Step 2: Calculate the new profit sharing ratio:
Madhu's share = 3/8 (3 out of the total ratio of 8)
Neha's share = 5/8 (5 out of the total ratio of 8)
Tina's share = 1/4 (as given)
Step 3: Calculate the new capital of the firm after Tina's admission:
Total capital after Tina's admission = Total capital before Tina's admission + Tina's capital
= 10,00,000 + 4,00,000
= 14,00,000
Step 4: Calculate the total share of profits after Tina's admission:
Madhu's share = Madhu's share ratio / Total ratio * Total profit
= 3/8 * Total profit
Neha's share = Neha's share ratio / Total ratio * Total profit
= 5/8 * Total profit
Tina's share = Tina's share ratio / Total ratio * Total profit
= 1/4 * Total profit
Step 5: Calculate the amount of profit acquired by Tina from Neha:
Tina's capital = 4,00,000
Tina's share of profits = Tina's share / Total share of profits * Total profit
= 1/4 / (3/8 + 5/8) * Total profit
= 1/4 * 8/8 * Total profit
= 1/4 * Total profit
Neha's share of profits = Neha's share / Total share of profits * Total profit
= 5/8 / (3/8 + 5/8) * Total profit
= 5/8 * 8/8 * Total profit
= 5/8 * Total profit
Amount acquired by Tina from Neha = Tina's share of profits / Tina's share ratio * Neha's share ratio
= 1/4 * Total
- Madhu and Neha are partners in a firm sharing profits and losses in the ratio of 3:5.
- Madhu's fixed capital is 4,00,000 and Neha's fixed capital is 6,00,000.
- Tina is admitted as a new partner with 1/4th share in the profits.
- Tina acquires her share of profit from Neha.
- Tina brings 4,00,000 as her capital, which is to be kept fixed like the capitals of Madhu and Neha.
To Find:
The goodwill of the firm on Tina's admission.
Solution:
Goodwill is the value of reputation and customer loyalty that a business has built up over time. It is an intangible asset that represents the ability of a firm to earn greater profits than the value of its tangible assets alone.
Step 1: Calculate the total capital of the firm before Tina's admission:
Madhu's capital = 4,00,000
Neha's capital = 6,00,000
Total capital before Tina's admission = Madhu's capital + Neha's capital
= 4,00,000 + 6,00,000
= 10,00,000
Step 2: Calculate the new profit sharing ratio:
Madhu's share = 3/8 (3 out of the total ratio of 8)
Neha's share = 5/8 (5 out of the total ratio of 8)
Tina's share = 1/4 (as given)
Step 3: Calculate the new capital of the firm after Tina's admission:
Total capital after Tina's admission = Total capital before Tina's admission + Tina's capital
= 10,00,000 + 4,00,000
= 14,00,000
Step 4: Calculate the total share of profits after Tina's admission:
Madhu's share = Madhu's share ratio / Total ratio * Total profit
= 3/8 * Total profit
Neha's share = Neha's share ratio / Total ratio * Total profit
= 5/8 * Total profit
Tina's share = Tina's share ratio / Total ratio * Total profit
= 1/4 * Total profit
Step 5: Calculate the amount of profit acquired by Tina from Neha:
Tina's capital = 4,00,000
Tina's share of profits = Tina's share / Total share of profits * Total profit
= 1/4 / (3/8 + 5/8) * Total profit
= 1/4 * 8/8 * Total profit
= 1/4 * Total profit
Neha's share of profits = Neha's share / Total share of profits * Total profit
= 5/8 / (3/8 + 5/8) * Total profit
= 5/8 * 8/8 * Total profit
= 5/8 * Total profit
Amount acquired by Tina from Neha = Tina's share of profits / Tina's share ratio * Neha's share ratio
= 1/4 * Total
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Madhu and Neha were partners in a firm sharing profits and losses in the ratio of 3:5. Their fixed capitals were 4,00,000 and 6,00,000 respectively. On 1st Jan, 2016, Tina was admitted as a new partner for 1/4th share in the profits. Tina acquired her share of profit from Neha. Tina brought 4,00,000 as her capital which was to be kept fixed like the capitals of Madhu and Neha. Calculate the goodwill of the firm on Tinas admission and choose the correct option.a)50,000b)2,00,000c)20,000d)14,00,000Correct answer is option 'B'. Can you explain this answer?
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Madhu and Neha were partners in a firm sharing profits and losses in the ratio of 3:5. Their fixed capitals were 4,00,000 and 6,00,000 respectively. On 1st Jan, 2016, Tina was admitted as a new partner for 1/4th share in the profits. Tina acquired her share of profit from Neha. Tina brought 4,00,000 as her capital which was to be kept fixed like the capitals of Madhu and Neha. Calculate the goodwill of the firm on Tinas admission and choose the correct option.a)50,000b)2,00,000c)20,000d)14,00,000Correct answer is option 'B'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Madhu and Neha were partners in a firm sharing profits and losses in the ratio of 3:5. Their fixed capitals were 4,00,000 and 6,00,000 respectively. On 1st Jan, 2016, Tina was admitted as a new partner for 1/4th share in the profits. Tina acquired her share of profit from Neha. Tina brought 4,00,000 as her capital which was to be kept fixed like the capitals of Madhu and Neha. Calculate the goodwill of the firm on Tinas admission and choose the correct option.a)50,000b)2,00,000c)20,000d)14,00,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Madhu and Neha were partners in a firm sharing profits and losses in the ratio of 3:5. Their fixed capitals were 4,00,000 and 6,00,000 respectively. On 1st Jan, 2016, Tina was admitted as a new partner for 1/4th share in the profits. Tina acquired her share of profit from Neha. Tina brought 4,00,000 as her capital which was to be kept fixed like the capitals of Madhu and Neha. Calculate the goodwill of the firm on Tinas admission and choose the correct option.a)50,000b)2,00,000c)20,000d)14,00,000Correct answer is option 'B'. Can you explain this answer?.
Madhu and Neha were partners in a firm sharing profits and losses in the ratio of 3:5. Their fixed capitals were 4,00,000 and 6,00,000 respectively. On 1st Jan, 2016, Tina was admitted as a new partner for 1/4th share in the profits. Tina acquired her share of profit from Neha. Tina brought 4,00,000 as her capital which was to be kept fixed like the capitals of Madhu and Neha. Calculate the goodwill of the firm on Tinas admission and choose the correct option.a)50,000b)2,00,000c)20,000d)14,00,000Correct answer is option 'B'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Madhu and Neha were partners in a firm sharing profits and losses in the ratio of 3:5. Their fixed capitals were 4,00,000 and 6,00,000 respectively. On 1st Jan, 2016, Tina was admitted as a new partner for 1/4th share in the profits. Tina acquired her share of profit from Neha. Tina brought 4,00,000 as her capital which was to be kept fixed like the capitals of Madhu and Neha. Calculate the goodwill of the firm on Tinas admission and choose the correct option.a)50,000b)2,00,000c)20,000d)14,00,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Madhu and Neha were partners in a firm sharing profits and losses in the ratio of 3:5. Their fixed capitals were 4,00,000 and 6,00,000 respectively. On 1st Jan, 2016, Tina was admitted as a new partner for 1/4th share in the profits. Tina acquired her share of profit from Neha. Tina brought 4,00,000 as her capital which was to be kept fixed like the capitals of Madhu and Neha. Calculate the goodwill of the firm on Tinas admission and choose the correct option.a)50,000b)2,00,000c)20,000d)14,00,000Correct answer is option 'B'. Can you explain this answer?.
Solutions for Madhu and Neha were partners in a firm sharing profits and losses in the ratio of 3:5. Their fixed capitals were 4,00,000 and 6,00,000 respectively. On 1st Jan, 2016, Tina was admitted as a new partner for 1/4th share in the profits. Tina acquired her share of profit from Neha. Tina brought 4,00,000 as her capital which was to be kept fixed like the capitals of Madhu and Neha. Calculate the goodwill of the firm on Tinas admission and choose the correct option.a)50,000b)2,00,000c)20,000d)14,00,000Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Class 12.
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Madhu and Neha were partners in a firm sharing profits and losses in the ratio of 3:5. Their fixed capitals were 4,00,000 and 6,00,000 respectively. On 1st Jan, 2016, Tina was admitted as a new partner for 1/4th share in the profits. Tina acquired her share of profit from Neha. Tina brought 4,00,000 as her capital which was to be kept fixed like the capitals of Madhu and Neha. Calculate the goodwill of the firm on Tinas admission and choose the correct option.a)50,000b)2,00,000c)20,000d)14,00,000Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Madhu and Neha were partners in a firm sharing profits and losses in the ratio of 3:5. Their fixed capitals were 4,00,000 and 6,00,000 respectively. On 1st Jan, 2016, Tina was admitted as a new partner for 1/4th share in the profits. Tina acquired her share of profit from Neha. Tina brought 4,00,000 as her capital which was to be kept fixed like the capitals of Madhu and Neha. Calculate the goodwill of the firm on Tinas admission and choose the correct option.a)50,000b)2,00,000c)20,000d)14,00,000Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Madhu and Neha were partners in a firm sharing profits and losses in the ratio of 3:5. Their fixed capitals were 4,00,000 and 6,00,000 respectively. On 1st Jan, 2016, Tina was admitted as a new partner for 1/4th share in the profits. Tina acquired her share of profit from Neha. Tina brought 4,00,000 as her capital which was to be kept fixed like the capitals of Madhu and Neha. Calculate the goodwill of the firm on Tinas admission and choose the correct option.a)50,000b)2,00,000c)20,000d)14,00,000Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Madhu and Neha were partners in a firm sharing profits and losses in the ratio of 3:5. Their fixed capitals were 4,00,000 and 6,00,000 respectively. On 1st Jan, 2016, Tina was admitted as a new partner for 1/4th share in the profits. Tina acquired her share of profit from Neha. Tina brought 4,00,000 as her capital which was to be kept fixed like the capitals of Madhu and Neha. Calculate the goodwill of the firm on Tinas admission and choose the correct option.a)50,000b)2,00,000c)20,000d)14,00,000Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice Class 12 tests.
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