A and B are partners, they admit C into partnership. C was asked to pay Rs 2,50,000 though his share of capital was estimated Rs 2,00,000 only. For wh - Accountancy MCQ CUET Accountancy 2026 | ExamTest.live

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A and B are partners, they admit C into partnership. C was asked to pay Rs 2,50,000 though his share of capital was estimated Rs 2,00,000 only. For what was the extra Rs 50,000 asked from C?

Solution & Step-by-step Explanation

When an incoming partner brings an amount over and above their share of capital, the premium/extra amount represents their share of goodwill. This compensates the existing partners for sacrificing their profit share. Premium for Goodwill = Amount Paid - Estimated Capital Share Premium for Goodwill = Rs 2, 50, 000 - Rs 2, 00, 000 = Rs 50, 000

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A and B are partners, they admit C into partnership. C was asked to pay Rs 2,50,000 though his share of capital was estimated Rs 2,00,000 only. For what was the extra Rs 50,000 asked from C?

Capital

Reserve

Liabilities

Goodwill

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