Ram and Shyam are partners in a firm with capital of Rs. 4,50,000 and Rs. 3,10,000 respectively. They admitted Ganesh as a partner with $${\frac{1}{4}^{{\text{th}}}}$$ share of profit. Ganesh brings Rs. 3,00,000 as his capital. Ganesh’s share of goodwill will be

[amp_mcq option1=”Rs. 1,10,000″ option2=”Rs. 27,000″ option3=”Rs. 17,500″ option4=”Rs. 70,000″ correct=”option3″]

The correct answer is C. Rs. 17,500.

Explanation:

The total capital of the firm is Rs. 4,50,000 + Rs. 3,10,000 = Rs. 7,60,000.
Ganesh’s share of capital is Rs. 3,00,000.
Ganesh’s share of goodwill is = (300000/760000)*1/4 = Rs. 17,500.

The other options are incorrect because they are not the correct share of goodwill for Ganesh.