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The total goodwill amount to be brought by a new partner is ₹20,000, of which he brings ₹12,000 in cash. What balance amount will be adjusted through his account?

Answer and explanation

Correct answer: ₹8,000

The balance goodwill amount is calculated as: total goodwill − cash brought = ₹20,000 − ₹12,000 = ₹8,000. Therefore, ₹8,000 will be adjusted through the new partner’s account. Exam tip: For partial payment of goodwill, subtract the cash brought from the total goodwill amount.

Related tags

Goodwill AccountingAdmission Of PartnerPartial GoodwillNumerical AdjustmentReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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