P, Q and R share profits equally. At the time of P's retirement, goodwill appears in the books at ₹3,000. P will be credited with...... amount for Goodwill share.
Answer & explanation
Correct answer: option 2
The correct answer is option 2- ₹1,000.
Goodwill = 3,000
Profit sharing ratio = 1:1:1
Goodwill already appears in the books at Rs 3,000. At the time of retirement, P is entitled only to his share of the existing goodwill.
P's share = 3,000 x 1/3
= 1,000
So, P will be credited with 1,000 amount for Goodwill share.