Q1.?A, B and C are the partners sharing profits and losses in the ratio of 5:3:2. C retired and his capital balance after adjustments regarding Reserves, Accumulated profits/ losses and gain/loss on revaluation was 2,50,000. C was paid 3,00,000 in full settlement. Afterwards D was admitted for 1/4th share . Calculate the amount of goodwill premium brought by D

C's capital balance after adjustment was 250000 but he was paid 300000. He was paid 50000 more. This 50000 belongs to his share of goodwill.( 1/5 share). If 1/5 share is equal to 50000 then firm's goodwill will 250000. D is admitted for 1/4 share. And 1/4 of 250000 equal to 62500 is the share of goodwill of D.
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C's capital balance after adjustment was 250000 but he was paid 300000. He was paid 50000 more. This 50000 belongs to his share of goodwill.( 1/5 share). If 1/5 share is equal to 50000 then firm's goodwill will 250000. D is admitted for 1/4 share. And 1/4 of 250000 equal to 62500 is the share of goodwill of D.
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