Question

Ramesh and Suresh are partners sharing profits in the firm in the ratio of 2 : 3 Goodwill appears in the books of firm at Rs 10,000. Rahim joins the firm for 1/5 share of profits. His share of Goodwill is estimated to be Rs 15,000. The old partners account will be credited with Goodwill by:

• A. Rs 50,000
• B. Rs 40,000
• C. Rs 75,000
• D. Rs 65,000

Answer 1

The correct option is D Rs 65,000

Goodwill of ₹15000 will be credited to the old partner's account.