Prateek’s capital = 1,00,000
Capitalised value of the firm = (prateek’s capital × reciprocal of Prateek’s share of profit) = 1,00,000×3 = 3,00,000
Net worth of the firm = total capital of the partner (Including the new partner) = 90,000+70,000+1,00,000 = 2,60,000
Hidden goodwill = ( Capitalised value of the firm- Net worth of the firm) =3,00,000-2,60,000 = 40,000
Thus, Value of firm’s Goodwill is Rs.40,000.