Question

Analyse the case given below and answer the question that follow:

Alia, Karan and Shilpa were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Goodwill appeared in their books at the value of ₹ 60,000. Karan decided to retire from the firm. On the date of his retirement, goodwill of the firm was valued at ₹ 2,40,000. The new profit sharing ratio decided among Alia and Shilpa was 2 : 3. Give the answer to the question given below:

What amount of goodwill will be transferred to Karan's Capital account?

Options

• ₹ 96,000

• ₹ 72,000

• ₹ 24,000

• ₹ 18,000

Answer 1

₹ 72,000

Explanation:

The new profit sharing ratio shares the new goodwill.