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Question : A, M and R are partners sharing profit and losses in the ratio of 2:2:1. M retired from the firm. At that time goodwill of the firm was valued at Rs. 30,000. What contribution has to be made by A and R to pay M?

Option 1: Rs. 20,000 and Rs. 10,000

Option 2:

Rs. 15,000 and Rs. 15,000

 

Option 3: Rs. 8,000 and Rs. 4,000

Option 4:

Rs. 6,000 and Rs. 6,000

 


Team Careers360 7th Jan, 2024
Answer (1)
Team Careers360 14th Jan, 2024

Correct Answer: Rs. 8,000 and Rs. 4,000


Solution : Answer = Rs. 8,000 and Rs. 4,000

When a partner retires, the remaining partners compensate the retiring partner for their share of the goodwill.

In this case, since M's share of the goodwill is one-fifth (2/5) of Rs. 30,000, which is Rs. 12,000.

A and R, in the ratio of 2:1, contribute Rs. 8,000 and Rs. 4,000, respectively, to pay M.
Hence, the correct option is 3.

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