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Question
G, S and T were partners sharing profits in the ratio 3:2:1. G retired and his dues towards the firm including Capital balance, Accumulated profits and losses share, Revaluation Gain amounted to ₹ 5,80,000. G was being paid ₹ 7,00,000 in full settlement. For giving that additional amount of ₹ 1,20,000, S was debited for ₹ 40,000. Determine goodwill of the firm.
Options
₹ 1,20,000
₹ 80,000
₹ 2,40,000
₹ 3,60,000
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Solution
₹ 2,40,000
Explanation:
Gaining ratio of T = `1/3`
Amount of G’s goodwill paid by T = ₹ 80,000;
Goodwill of the firm = `80,000xx3/1` = ₹ 2,40,000
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