Question:
Asit, Sonu and Hina were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Asit retired and the balance in his capital account after making necessary adjustments on account of reserves and revaluation of assets and liabilities was ₹ 40,00,000. Sonu and Hina agreed to pay him ₹ 45,00,000 in full settlement of his claim. The value of goodwill of the firm was:
Asit, Sonu and Hina were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Asit retired and the balance in his capital account after making necessary adjustments on account of reserves and revaluation of assets and liabilities was ₹ 40,00,000. Sonu and Hina agreed to pay him ₹ 45,00,000 in full settlement of his claim. The value of goodwill of the firm was:
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Retiring partner’s extra payout = their share of goodwill. Use proportion to calculate total goodwill.
Updated On: Jul 7, 2025
- ₹ 5,00,000
- ₹ 20,00,000
- ₹ 15,00,000
- ₹ 10,00,000
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The Correct Option is A
Solution and Explanation
Asit’s final balance = ₹ 40,00,000
Amount paid to him = ₹ 45,00,000
Excess amount = ₹ 5,00,000 (This must be his share of goodwill)
Therefore, this ₹ 5,00,000 is Asit's share of goodwill.
His profit share = \( \frac{3}{6} = \frac{1}{2} \)
\[ \text{Goodwill of firm} = \frac{5,00,000}{1/2} = ₹ 10,00,000 \] Final Answer: ₹ 10,00,000
Amount paid to him = ₹ 45,00,000
Excess amount = ₹ 5,00,000 (This must be his share of goodwill)
Therefore, this ₹ 5,00,000 is Asit's share of goodwill.
His profit share = \( \frac{3}{6} = \frac{1}{2} \)
\[ \text{Goodwill of firm} = \frac{5,00,000}{1/2} = ₹ 10,00,000 \] Final Answer: ₹ 10,00,000
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