Question

Radhika and Raman are the partners in a firm sharing Profits in the ratio of 7:3. They admitted Kamal as a new partner for $\frac{1}{10}$th share. Kamal brings ₹ 19,75,000 as his capital and necessary share for premium for goodwill. It was agreed to value the goodwill at 3 years purchase of super profit. During the year, the firm earned a profit of ₹ 4,50,000 and capital employed ₹ 17,50,000. If normal rate of return is 15%, calculate the amount that Kamal should bring in for goodwill.

• A. ₹ 56,250
• B. ₹ 5,62,500
• C. ₹ 1,87,500
• D. ₹ 2,62,500

Answer 1

Answer: (A)

₹ 56,250

Answer 2

The correct option is (A) :₹ 56,250