Accountancy Part AReconstitution of Partnership Firm: Retirement and Death

Amount of existing goodwill written off to Karan's capital A/c will b…

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 written off to Karan's capital A/c will be:

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → ₹18,000

The goodwill of ₹60,000 already in the books is written off by debiting all the partners, Karan included, in the old ratio 5 : 3 : 2.

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

NCERT (2026-27 edition):
Summary – “… If goodwill already appears in the books, it will be written off by debiting all partner’s capital account in their old profit sharing ratio.”