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.

Amount of existing goodwill debited to Akhil's capital account is:

Options:

₹18,000

₹12,000

₹30,000

₹21,000

Correct Answer:

₹30,000

Explanation:

The correct answer is Option (3) - ₹30,000.

Existing goodwill is distributed in old ratio between old partners.

Existing goodwill = 60000
Old ratio = 5:3:2
Akhil share = 60000 x 5/10
                 = ₹30000