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A and B are Partners in the ratio of 1:2 . They admitted Z for 1/4 share whose contribution was 50,000 towards goodwill. What is the value of firm?

a)75,000

b)200,000

c)150,000

d)85.000

Firm Valuation Accounting Finance
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Question added by Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants
Date Posted: 2015/07/09
Upvote (0) Views (7) Followers (4) Answers (4) Report Question
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Dalpat Mehta
by Dalpat Mehta , Head of Corporate Resources. , SUN CAPITAL ADVISORY SERVICES PVT LTD

b)200,000.

Goodwill for1/4 share is50,000 so for the firm value of goodwill will be200000.

Deleted user

If1/4 =50000, then Value of the firm is50000*4=200,000

lakshminarasimham mallareddi
by lakshminarasimham mallareddi , Manager Finance & Accounts , M/s. Vandana Global Limited, Raipur, Chhattisgarh

Correct answer is B)200,000 will be the value of the Firm.1/4th Share of the Goodwill will be50,000

Gayasuddin Mohammed
by Gayasuddin Mohammed , Advocate , Practicing Law before High Court at Hyderabad

b)200,000

After new partner, shares of individuals ratio a,b,z will be in ratio of1:2:1

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