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C brings capital of (₹120000) for (1/5) share. On this basis total capital of the firm is taken as (₹600000), while actual adjusted capital is (₹480000). What will be hidden goodwill?

Answer and explanation

Correct answer: (₹120000)

Hidden goodwill is found from the difference between total capital and actual adjusted capital. (600000-480000=₹120000) is the correct answer.

Related tags

GoodwillHidden GoodwillAdmissionPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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