Question

A, B and C were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. C retired and his capital balance after adjustments regarding reserves, accumulated profits/losses and his share of gain on revaluation was ₹ 2,50,000. C was paid ₹ 3,22,000 including his share of goodwill. The amount credited to C’s Capital Account, on his retirement, for goodwill will be:

Options

• ₹ 72,000

• ₹ 7,200

• ₹ 14,400 

• ₹ 3,22,000

Answer 1

₹ 72,000

Explanation:

C’s share of goodwill = ₹ 3,22,000 – ₹ 2,50,000

= ₹ 72,000