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Question : P Q and R are partners sharing profit and losses in the ratio of 5:3:2. R retires and goodwill is valued at  Rs 80,000. Adjustments for goodwill will be 

Option 1: Cr R’s capital  account by Rs 80,000, Dr P’s capital account Rs 50,000 and Dr Q’s capital account by Rs 30,000

Option 2: Cr R’s capital account by Rs 16,000, Dr P’s capital account by Rs 8,000 and Dr Q ’s capital account by Rs 8,000

Option 3: Cr R’s capital account by Rs 16,000 and debit P’s capital account by Rs 10,000 and Dr Q’s  capital account by Rs 6,000

Option 4: Cr R’s capital account by Rs 80,000. Dr P’s capital account by Rs 40,000 and Dr Q’s capital account by Rs 40,000


Team Careers360 6th Jan, 2024
Answer (1)
Team Careers360 14th Jan, 2024

Correct Answer: Cr R’s capital account by Rs 16,000 and debit P’s capital account by Rs 10,000 and Dr Q’s  capital account by Rs 6,000


Solution : Answer = Cr R’s capital account by Rs 16,000 and debit P’s capital account by Rs 10,000 and Dr Q’s  capital account by Rs 6,000

P's Capital A/c Dr 10,000

Q's Capital A/c Dr 6000

To R's Capital A/c 16000

(Total Goodwill = 80,000

R's Share = 80,000 x 2/10 = 16,000

(Gaining Ratio = 5:3)
Hence, the correct option is 3.

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