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A and B are partners in a firm with capital of 5 lakhs each. They admitt C as partner for 1/4 th share in profits of the firm. C brings 8 lakhs. the profit and loss a/c showed a credit balance of 4 lakhs as on date of admission. The value of hidden goodwill is a,14 lakhs b,18 lakhs c,10 lakhs d,none please answer quick with explanation?
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A and B are partners in a firm with capital of 5 lakhs each. They admi...
Calculation of Hidden Goodwill:

Initial Capital Contribution:
- A's capital = 5 lakhs
- B's capital = 5 lakhs
- Total initial capital = 5 lakhs + 5 lakhs = 10 lakhs

Capital after C's Admission:
- C's capital = 8 lakhs
- Total capital after C's admission = 10 lakhs + 8 lakhs = 18 lakhs

Profit and Loss Account Balance:
- Credit balance = 4 lakhs

Calculation of Total Value:
- Total value = Total capital + Credit balance
- Total value = 18 lakhs + 4 lakhs = 22 lakhs

Calculation of C's Share in Total Value:
- C's share = 1/4 of total value
- C's share = 1/4 * 22 lakhs = 5.5 lakhs

Calculation of Hidden Goodwill:
- Hidden Goodwill = Total value - (A's capital + B's capital + C's capital)
- Hidden Goodwill = 22 lakhs - (5 lakhs + 5 lakhs + 8 lakhs) = 22 lakhs - 18 lakhs = 4 lakhs
Therefore, the value of hidden goodwill is 4 lakhs. Option d, none, is the correct answer.
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A and B are partners in a firm with capital of 5 lakhs each. They admitt C as partner for 1/4 th share in profits of the firm. C brings 8 lakhs. the profit and loss a/c showed a credit balance of 4 lakhs as on date of admission. The value of hidden goodwill is a,14 lakhs b,18 lakhs c,10 lakhs d,none please answer quick with explanation?
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A and B are partners in a firm with capital of 5 lakhs each. They admitt C as partner for 1/4 th share in profits of the firm. C brings 8 lakhs. the profit and loss a/c showed a credit balance of 4 lakhs as on date of admission. The value of hidden goodwill is a,14 lakhs b,18 lakhs c,10 lakhs d,none please answer quick with explanation? 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 in a firm with capital of 5 lakhs each. They admitt C as partner for 1/4 th share in profits of the firm. C brings 8 lakhs. the profit and loss a/c showed a credit balance of 4 lakhs as on date of admission. The value of hidden goodwill is a,14 lakhs b,18 lakhs c,10 lakhs d,none please answer quick with explanation? 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 in a firm with capital of 5 lakhs each. They admitt C as partner for 1/4 th share in profits of the firm. C brings 8 lakhs. the profit and loss a/c showed a credit balance of 4 lakhs as on date of admission. The value of hidden goodwill is a,14 lakhs b,18 lakhs c,10 lakhs d,none please answer quick with explanation?.
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