157 Views

Question : Alia, Karan and Shilpa were partners in a firm sharing profits in the ratio of 5: 3: 2. Goodwill appeared in their books at a value of Rs. 60,000 and General Reserve at Rs. 20,000. Karan decided to retire from the firm. On the date of his retirement, goodwill of the firm was valued at Rs. 2,40,000. The new profit-sharing ratio decided between Alia and Shilpa was 2: 3.

Amount payable to Karan on his retirement will be:

Option 1: Rs 72,000

Option 2: Rs 60,000

Option 3: Rs 18,000

Option 4: None of the above


Team Careers360 12th Jan, 2024
Answer (1)
Team Careers360 22nd Jan, 2024

Correct Answer: Rs 60,000


Solution : Answer = Rs 60,000

G.Reserve $\left(20,000 \times \frac{3}{10}\right)$ 6,000
Goodwill $\left(2,40,000 \times \frac{3}{10}\right)$ 72,000
(-) Goodwill(written off) [$\left(60,000 \times \frac{3}{10}\right)$] (18,000)
Amount payable to Karan 60,000

Hence, the correct option is 2.

Related Questions

UPES Integrated LLB Admission...
Apply
Ranked #28 amongst Institutions in India by NIRF | Ranked #1 in India for Academic Reputation by QS University Rankings | 16.6 LPA Highest CTC
SLAT 2025 - The Symbiosis Law...
Apply
Conducted by Symbiosis International (Deemed University) | Ranked #5 in Law by NIRF | Ranked #2 among best Pvt Universities by QS World Rankings
Jindal Global Law School Admi...
Apply
Ranked #1 Law School in India & South Asia by QS- World University Rankings | Merit cum means scholarships
Symbiosis Law School Pune Adm...
Apply
NAAC A++ Accredited | Ranked #5 by NIRF
Nirma University Law Admissio...
Apply
Grade 'A+' accredited by NAAC
ISBR Business School PGDM Adm...
Apply
180+ Companies | Highest CTC 15 LPA | Average CTC 7.5 LPA | Ranked as Platinum Institute by AICTE for 6 years in a row | Awarded Best Business Scho...
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books