Analyse the case given below and answer the questions that follow:

Alia, Karan and Shilpa were partners in a firm sharing profits in the ratio of 5:3:2. Goodwill appeared in their books at the value 60,000. Karan decided to retire from the firm. On the date of his retirement, goodwill of the firm was valued at 2,40,000. The new profit sharing ratio decided among Alia and Shilpa was 2:3.

What amount of Goodwill (Goodwill valued at retirement) will be credited to Karan's Capital account?

₹72,000

The correct answer is option 2- ₹72,000.

Goodwill of the firm = 2,40,000

Share of Karan = 3/10*240000
                        = 72,000