Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

Read the following passage and answer the question.

Ravi, Kavi and Sunny are partners in a firm sharing profits and losses in the ratio 4 : 2 : 3. On 1st April 2022, Sunny gives notice for his retirement. His share was taken by Ravi and Kavi in 13 : 11 and goodwill of the firm was valued at ₹ 72000.

After three months, they admit Hari as a new partner for $\frac{1}{5}$th share in firm who brings ₹ 2,00,000 as capital and necessary amount for goodwill in cash which was valued ₹ 80,000 for the firm. Hari acquired his share equally from Ravi and Kavi.

Select the amount that must be paid by Ravi to compensate Sunny for his share of goodwill in the firm at the time of his retirement.

Options:

₹ 72,000

₹ 24,000

₹ 13,000

₹ 11,000

Correct Answer:

₹ 13,000

Explanation:

The correct answer is Option (3) - ₹ 13,000.

Goodwill of the firm = 72000
Sunny's share in goodwill = 72000 x 3/9
                                     = 24000

Gaining ratio between Ravi and Kavi = 13 : 11
Ravi's compensate = 24000 x 13/24
                            = 13000