A,B and C are partners sharing profits and losses in the ratio of 5:4:3. C retires and is credited for 9,000 as goodwill. How much will be debited to A in respect of goodwill adjustment?
(a) * 20,000
(b) * 16,000
(d) * 4,000
(c) * 5,000
show with step by step explanation
(a) * 20,000
(b) * 16,000
(d) * 4,000
(c) * 5,000
show with step by step explanation
Answers & Comments
Correct option is C)
At the time of retirement of partner goodwill is raised among old partners in old profit sharing ratio.
In the given question :
Profit sharing ratio of A, B and C = 3 : 2 : 1
Therefore, C's share of goodwill = Rs. 60000 * (1/6) = Rs. 10000
i hope it helps and mark me as brainlist answers