Multiple choice

A, B and C are partners sharing profits in the ratio 2 : 2 : 1. On retirement of B, goodwill was valued as Rs. 30000. What is the contribution of A and C to compensate B?

  1. Rs. 20000 and Rs. 10000

  2. Rs. 8000 and Rs. 4000

  3. Rs. 800 and Rs. 4000

  4. Rs. 15000 and Rs. 15000

  5. No contribution <o:p> </o:p>
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
Amount of B's share of the goodwill of the firm = 30000*2/5 = Rs. 12000

A's contribution = 12000*2/3 = Rs. 8000 B's contribution = Rs. 12000*1/3 = Rs. 4000| | | | | | | | | | | | | | | | | | | | | | |

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