A, B and C were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. The capital balance are ₹50,000 for A, ₹70,000 for B, ₹35,000 for C. B decided to retire from the firm and balance in reserve on the date was ₹25,000. If goodwill of the firm was valued at ₹30,000 and profit on revaluation was ₹7,500 then, what amount will be payable to B?

₹95,000

The correct answer is option 3- ₹95,000.

Amount payable to B = Capital balance + Profit share in revaluation + Share in goodwill + share in reserve

Revaluation profit share of B = 7,500 x 2/5
                                              = ₹3,000

B's Share in goodwill = 30,000 x 2/5
                                  = ₹12,000

B's share in reserve = 25,000 x 2/5
                                = 10,000

Amount payable to B = 70,000 + 3,000 + 12,000 + 10,000
                                  = ₹95,000