A and B are partners in a firm with capitals of ₹5,00,000 each. They admit C as a partnerwith 1/4th share in the profits of the firm . C brings in ₹8,00,000 as his share of capital. Theprofits and loss account showed a credit balance of ₹4,00,000 as on the date of hisadmission. The value of hidden goodwill will be

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Correct Answer is : ₹10,00,000

CA CPT Dec 2016 Question Paper Fundamentals of Accounting for online practice