Question

A,B & Care partners sharing profits and losses in the ration 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

The correct option is C $Rs.10,000$

Profit sharing ratio among partners A : B : C = 3 : 2 : 1

C's share of profit = 1/6

C's share of goodwill = Total goodwill * C's share

= 60000 * (1/6)

= 10000