Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

On the basis of the information given answer the question below :

Akhil, Karan and Sakshi are partners sharing profits in the ratio 5 : 3 : 2. Goodwill already appear in the books ₹60,000. Karan decided to retire from the firm. Goodwill of the firm was valued at ₹2,40,000. Existing partners decided to share profits in the ratio 3 : 2.

Karan will be credited on account of Goodwill with:

Options:

₹96,000

₹72,000

₹24,000

₹18,000

Correct Answer:

₹72,000

Explanation:

The correct answer is Option (2) - ₹72,000.

Karan share in goodwill = 240000 x 3/10
                                   = ₹72000