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Goodwill is Rs. 20,000 and Ajay joins for 1/4 share. What premium does Ajay bring?
ARs. 4,000
BRs. 10,000
CRs. 20,000
DRs. 5,000
Answer & Solution
Correct answer: D. Rs. 5,000
The new partner pays his fraction of goodwill, which is 1/4 of 20,000 = 5,000.
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