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.
Existing goodwill is written off in old ratio.
Karan old share = 3/10
Karan share in goodwill = 60,000 x 3/10
= ₹18,000