Question:
Ram and Shyam were partners in a firm sharing profits and losses in the ratio of 5 : 3. Mohan was admitted as a new partner for \( \frac{1}{5} \)th share in the profits of the firm. Mohan brought ₹ 2,50,000 as his share of capital and ₹ 2,00,000 as his share of goodwill premium. The value of the firm’s goodwill was :
Ram and Shyam were partners in a firm sharing profits and losses in the ratio of 5 : 3. Mohan was admitted as a new partner for \( \frac{1}{5} \)th share in the profits of the firm. Mohan brought ₹ 2,50,000 as his share of capital and ₹ 2,00,000 as his share of goodwill premium. The value of the firm’s goodwill was :
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To calculate total goodwill when a new partner brings his share of goodwill, divide the premium amount by the partner’s share.
Updated On: Feb 9, 2026
- ₹ 2,00,000
- ₹ 4,50,000
- ₹ 12,50,000
- ₹ 10,00,000
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The Correct Option is D
Solution and Explanation
Mohan’s share in profits = \( \frac{1}{5} \)
Goodwill premium brought by Mohan = ₹ 2,00,000
This ₹ 2,00,000 is for his \( \frac{1}{5} \) share in firm’s goodwill.
So, Total Goodwill of the firm = \( \frac{2,00,000}{1/5} = 2,00,000 \times 5 = ₹ 10,00,000 \) Final Answer: ₹ 10,00,000
Goodwill premium brought by Mohan = ₹ 2,00,000
This ₹ 2,00,000 is for his \( \frac{1}{5} \) share in firm’s goodwill.
So, Total Goodwill of the firm = \( \frac{2,00,000}{1/5} = 2,00,000 \times 5 = ₹ 10,00,000 \) Final Answer: ₹ 10,00,000
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