A and B are partners in a firm with capital of Rs 60,000 and Rs 1,20,000

37 :- A and B are partners in a firm with capital of Rs 60,000 and Rs 1,20,000 respectively. They decide to admit C into the partnership for 1/4th share in the future profits. C is to bring in a sum of Rs 70,000 as his capital. Calculate amount of goodwill.
Solution:-
Based on C’s capital, total capital of the firm is 70,000 x 4 = 2,80,000
Less : A’s capital 60,000
B’s capital 1,20,000
C’s capital 70,000
Value of goodwill of the firm 30,000