P, Q and R share profits equally. At the time of P's retirement, goodwill appears in the books at ₹3,000. P will be debited with...... amount for Goodwill share.
Answer & explanation
Correct answer: option 2
The correct answer is option 2- ₹1,000.
Existing Goodwill of firm = 3,000
Profit sharing ratio = Equally (1:1:1)
P's share = 3,000 x 1/3
= 1,000