Read the following passage and answer the question.
X, Y, Z were partners sharing profits and losses in the ratio of 1:2:3. Z retired and his capital after making all adjustments is ₹2,20,000. X & Y agreed to pay him ₹2,50,000 in full settlement of his claim. The new profit-sharing ratio is 1:3.
What is the amount of hidden goodwill in Z's share?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- ₹30,000.
Agreed amount = ₹2,50,000
Z's capital after adjustments = ₹2,20,000
Hidden goodwill = Agreed capital - Capital after adjustment
= 2,50,000 - 2,20,000
= ₹30,000