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Question : A, B and C are sharing profits in the ratio of 3: 2: 1. Goodwill is appearing in the books at a value of Rs. 2,40,000. B retires and on the day of B's retirement Goodwill is valued at Rs. 6,00,000. A and C decided to share future profits in the ratio of 3: 2 amount payable to B will be ....

Option 1: 2,00,000

Option 2: 1,20,000

Option 3: 80,000

Option 4: None of the above


Team Careers360 22nd Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: 1,20,000


Solution : Answer = 1,20,000

B's Capital A/c
To Goodwill [$2,40,000 \times \frac{2}{6}$] 80,000 By A's capital A/c 60,000
To B's loan A/c 1,20,000 By C's Capital A/c 1,40,000
2,00,000 2,00,000


Total Goodwill= 6,00,000
B's Share= $6,00,000 \times \frac{2}{6}=2,00,000$

A's Capital A/c..........Dr 60,000
C's Capital a/c..........Dr 1,40,000
To B's Capital a/c 2,00,000.

[Gaining ratio= New ratio-Old ratio]

A= $\frac{3}{5}-\frac{3}{6}=\frac{18-15}{30}=\frac{3}{30}$
C= $\frac{2}{5}-\frac{1}{6}=\frac{12-5}{30}=\frac{7}{30}$
Hence, the correct option is 2.

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