Multiple choice

Asha and Nisha are partners sharing profits in the ratio 2 : 1. Kashish was admitted for 1/4 share, of which 1/8 was gifted by Asha. The remaining was contributed by Nisha. Goodwill of the firm is valued at Rs. 40,000. How much amount for goodwill will be credited to Nisha's capital account?

  1. Rs. 2,500

  2. Rs. 5,000

  3. Rs. 20,000

  4. Rs. 40,000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Kashish gets 1/4 share. Asha gives 1/8. Nisha gives (1/4 - 1/8) = 1/8. Nisha's sacrifice is 1/8 of the firm's goodwill. 1/8 * 40,000 = 5,000.

AI explanation

Kashish acquires 1/8 from Asha, leaving 1/4 minus 1/8 equal to 1/8 acquired from Nisha. The firm's goodwill is Rs. 40,000, so Nisha's credited amount is 1/8 of 40000. This results in Rs. 5,000.

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