Accountancy Part AReconstitution of Partnership Firm: Retirement and Death

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

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.

Answer & explanation

Correct answer: option 3

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

Goodwill already in the books (₹60,000) belongs to all the partners, including the retiring partner, so it is first written off among all partners in the old ratio 5 : 3 : 2.

Akhil’s share = ₹60,000 × 5/10 = ₹30,000

Karan’s share = ₹60,000 × 3/10 = ₹18,000

Sakshi’s share = ₹60,000 × 2/10 = ₹12,000

NCERT (2026-27 edition):
Illustration – “Hanny, Pammy and Sunny are partners sharing profits in the ratio of 3 : 2 : 1. Goodwill is appearing in the books at a value of Rs. 60,000. Pammy retires and at the time of Pammy’s retirement, goodwill is valued at Rs. 84,000. Hanny and Sunny decided to share future profits in the ratio of 2:1. Record the necessary journal entries.”

NCERT (2026-27 edition):
Test your Understanding – II

Extract from the NCERT textbook

NCERT (2026-27 edition):
Checklist to Test your Understanding

Extract from the NCERT textbook

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

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

Answer & explanation

Correct answer: option 3

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

Goodwill already in the books (₹60,000) belongs to all the partners, including the retiring partner, so it is first written off among all partners in the old ratio 5 : 3 : 2.