Question

A, B & C are partners sharing profit & losses in the ratio 5: 3 : 2. B retires firm. Value of goodwill is Rs. 1,20,000. Goodwill is to be raised. Show theeffect.
a) Revaluation account will be credited
b) C’s capital account will be credited by Rs. 36,000
c) Rs. 1,20,000 will be credited to all partners capitalaccount
d) None of these

Answer 1

Answer:

a:b:c

5:3:2

b's retire

goodwill 1,20,000