How to calculate goodwill?

A and B are partners Profit and Losses in ratio 3:2. C is admitted for 1/5Th share and brings Rs.10,000 As capital and necessary amount For his share of goodwill. The goodwill of entire firm is valued Rs.40,000. . . Goodwill brought by C is? plz explain.
Replies (3)

in this case goodwill brought by c will be one fifth of total goodwill i.e. 8000. 

the reason is afterwards at a later point of time when the firm is sold all the assets including goodwill will be shared among the partners in profit sharing ratio. so at that time he will get one fifth of goodwill i.e. 8000. but  the total goodwill(40000) is not  generated by c but generated by A and B alone. so since  C will get goodwill amount in the future, he is now giving that amount to enter into the firm

                                                                                                                 regards.

                                                                                                                VIJAY

Originally posted by : Shubham kumar
A and B are partners Profit and Losses in ratio 3:2. C is admitted for 1/5Th share and brings Rs.10,000 As capital and necessary amount For his share of goodwill. The goodwill of entire firm is valued Rs.40,000. . . Goodwill brought by C is? plz explain.

C is the new partner sharing 1/5th share. 
hence, Total capital of the partnership concern = 10000*5/1 = wich is equal to Rs.50000 .
and on the other side total goodwill of firm is = Rs.40000. 
so, therefore, 
G/W brought by C is = 50000-40000

                                      =Rs.10000 . 

Regards, 
Ankit Gupta

i agree with vijay bhasker he is correct that the amount of goodwill brought in by C is Rs 8,000. and Rs  2,000(i.e. 10,000-8000,)  shall be his share of Capital 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
23 October 2026
Sr. Accountant

SANKARAN & KRISHNAN

New Delhi

B.Com

View Details
Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details
Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details