Question

A, B & C are partners sharing profits and losses in the ratio of 3:2:1. C retires on a decided date and Goodwill of the firm is to be valued at Rs. 60,000. Find the amount payable to retiring partner on account of goodwill.

• A. Rs. 30,000
• B. Rs. 20,000
• C. Rs. 10,000
• D. Rs. 60,000

Answer 1

Answer: (C)

Rs. 10,000

At the time of retirement of partner goodwill is raised among old partners in old profit sharing ratio.

In the given question :

Profit sharing ratio of A, B and C = 3 : 2 : 1

Therefore, C's share of goodwill = Rs. 60000 * (1/6) = Rs. 10000