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 A, B and C are partners sharing profits equally. A retires and goodwill appearing in the books at Rs. 3,000 is valued at Rs. 6,000. A will get credit of :
  • a)
    Rs. 2,000
  • b)
    Rs. 3,000
  • c)
    Rs. 500
  • d)
    Rs. 1,000
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
A, B and C are partners sharing profits equally. A retires and goodwil...
Calculation of A's Share in Goodwill:

The goodwill appearing in the books at Rs. 3,000 is undervalued as its actual value is Rs. 6,000. Therefore, the revaluation of goodwill will increase by Rs. 3,000 (6,000 - 3,000).

As A is retiring, he is entitled to the share in the revalued goodwill. As the partners share profits equally, A's share in the revalued goodwill will be 1/3rd of Rs. 3,000 (3,000/3) which is equal to Rs. 1,000.

Therefore, A will get credit of Rs. 1,000 in his capital account for his share in the revalued goodwill.

Answer: Option (D) Rs. 1,000
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Community Answer
A, B and C are partners sharing profits equally. A retires and goodwil...
A ka share 1/3 hai tho goofwill ka bhi 1/3 hoga mtlb 3000 ka 1/3 1000
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A, B and C are partners sharing profits equally. A retires and goodwill appearing in the books at Rs. 3,000 is valued at Rs. 6,000. A will get credit of :a)Rs. 2,000b)Rs. 3,000c)Rs. 500d)Rs. 1,000Correct answer is option 'D'. Can you explain this answer?
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