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Question
Amay, Bina and Chander are partners in a firm with capital balances of ₹ 50,000, ₹ 70,000 and ₹ 80,000 respectively on 31st March, 2022. Amay decides to retire from the firm on 31st March 2022. With the help of the information provided, calculate the amount to be paid to Amay on his retirement. There existed a general reserve of ₹ 7,500 in the balance sheet on that date. The goodwill of the firm was valued at ₹ 30,000. Gain on revaluation was ₹ 24,000.
Options
₹ 88,500
₹ 90,500
₹ 65,375
₹ 70,500
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Solution
₹ 70,500
Explanation:
Amay’s share in General Reserve = `7,500xx1/3` = ₹ 2,500
Amay’s share in Goodwill = `30,000xx1/3` = ₹ 10,000
Amay’s share in gain on revaluation = `24,000xx1/3` = ₹ 8,000
The amount to be paid to Amay on his retirement:-
Opening Capital + Share in general Reserve + share in goodwill + share on revaluation gain
50,000 + 2,500 + 10,000 + 8,000
= ₹ 70,500
