Question

A and B are partners sharing profits in the ratio of 2 : 1. C was admitted for 1/4 share of profits, of which 2/12 was gifted by A. The remaining was contributed by B.

Goodwill of the firm is valued at ₹ 60,000. How much amount for goodwill will be credited to B’s Capital Account?

Options

• ₹ 10,000

• ₹ 60,000

• ₹ 5,000

• ₹ 15,000

Answer 1

₹ 5,000

Explanation:

Sacnfice by B = `1/4 - 2/12`

= `(1 xx 3)/(4 xx 3) - 2/12`

= `3/12 - 2/12`

= `1/12`

Hence, Goodwill credited to B’s Capital A/c = `60,000 xx 1/12`

= ₹ 5,000