C, R and S are partners sharing profits in the ratio of 5: 3: 2. R retires, the new profit sharing ratio between C and S will be 1:1. The Goodwill of the firm is valued at ₹1,00,000. R's share of Goodwill be adjusted:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → By debiting only S's capital accounts with ₹30,000
The retiring partner's share of goodwill is borne by the remaining partners in their gaining ratio:
R's share of goodwill = ₹1,00,000 × 3/10 = ₹30,000
C's gain = 1/2 − 5/10 = 0
S's gain = 1/2 − 2/10 = 3/10
Only S gains, so S's Capital A/c is debited with ₹30,000 and R's Capital A/c credited.
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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