Question

Raha, Naveen and Vandana were partners in a firm sharing profits and losses equally. Naveen retired on 31^st March, 2025. The balance in his capital account after making the necessary adjustments on account of reserves and revaluation of assets and reassessment of liabilities was ₹ 1,27,000. Naveen was paid ₹ 1,50,000 in full settlement of his claim. The value of goodwill of the firm on the date of Naveen's retirement was:

Options

• ₹ 1,50,000

• ₹ 23,000

• ₹ 69,000

• ₹ 4,50,000

Answer 1

₹ 69,000

Explanation:

Balance in Naveen’s Capital Account after all adjustments = ₹ 1,27,000

Amount actually paid to Naveen = ₹ 1,50,000

Extra amount paid:

1,50,000 − 1,27,000 = 23,000

This extra amount represents Naveen’s share of goodwill.

Since profits were shared equally among 3 partners:

Naveen’s share = `1/3` × Goodwill

23000 = `1/3` × Goodwill

Therefore,

Goodwill = 23,000 × 3 = 69,000