Question

Mohanlal, Girdharilal and Shyamlal are partners sharing profits in the ratio of 4:3:1. Shyamlal retires from the firm. On Shyamlal’s retirement, goodwill has been valued at Rs. 52,000. There was a goodwill account already appearing in the books of the firm with a value of Rs. 60,000. By what amount will Mohanlal`s capital account be debited with?

• A. None of the above
• B. Rs 8000
• C. It shall not be debited
• D. Rs 4000

Answer 1

The correct option is D

Rs 4000

Goodwill to be written off = 60,000-52,000 = Rs 8,000.

Mohanlal`s share = 8,000 $\times$ 4/8 = Rs 4,000.