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Commerce · Q659

Accounting

Graduate and Post Graduate · Commerce · question 659

Q659

A and B are partners sharing profits in the firm in the ratio of 2 : 3. Goodwill appears in the books of firm at Rs. 10,000. C joins the firm for 1/5 share of profits. His share of Goodwill is estimated to be Rs. 15,000. The old partner's account will be credited with Goodwill by

A and B are partners sharing profits in the firm in the ratio of 2 : 3. Goodwill appears in the books of firm at Rs. 10,000. C joins the firm for share of profits. His share of Goodwill is estimated to be Rs. 15,000. The old partner's account will be credited with Goodwill by
A.
Rs. 50,000
B.
Rs. 40,000
C.
Rs. 75,000
D.
Rs. 65,000
Answer

Answer: Option D

Solution

Answer: Option D
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