Question

A, B, and C are partners in a firm sharing profits in the ratio of 3:2:1. B retires. The goodwill of the firm is valued at Rs. 60,000 and the remaining partners A and C continue to share profits in the ratio of 3:1. By what amount will the capital account of B be credited ?

• A. None of the above
• B. Rs 20,000 & Rs 10,000
• C. It shall not be debited
• D. Rs 30,000 & Rs 10,000

Answer 1

The correct option is C

It shall not be debited

B's share of goowill $=\frac{2}{6}\times 60,000=Rs20,000$

So, Amount to be credited = Rs. 20,000