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A firm’s estimated total capital is ₹1,80,000 and its actual total capital is ₹1,55,000. What is the firm’s hidden goodwill?

Answer and explanation

Correct answer: ₹25,000

Hidden goodwill = estimated total capital − actual total capital. Therefore, ₹1,80,000 − ₹1,55,000 = ₹25,000, so option A is correct. ₹3,35,000 is the sum of the two amounts, not their difference. Exam tip: subtract the actual capital from the estimated total capital.

Related tags

Hidden GoodwillCapital DifferenceGoodwill AccountingNumerical AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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