Solution
Total Capital of the firm after Z’s admission = X’s Capital + Y’s Capital + undistributed Profit +Z’s Capital
= 50,000 + 50,000 + 40,000 + 80,000 = Rs. 2,20,000
Capitalised value of the firm on the basis Z’s share = 80,000 × 4/1 = 3,20,000
Goodwill = Capitalised value of the firm – total capital after z’s admission
= 3,20,000-2,20,000 = 1,00,000