Partners P, Q and R share profit in the ratio 5:3:2. On dissolution, goodwill is valued at Rs. 1,80,000 and is to be adjusted in the outgoing partners’ capital accounts in the profit‑sharing ratio. How much goodwill will be credited to partner Q’s capital account?
Answer
Rs. 54,000
The correct answer is Rs. 54,000 — Hence partner Q’s capital account is credited with Rs. 54,000.
Step-by-step solution
- Goodwill Rs. 1,80,000 is to be split in the profit‑sharing ratio of the outgoing partners.
- The profit‑sharing ratio of the three partners is 5:3:2. The total ratio sum is 5+3+2=10.
- Partner Q’s share of goodwill = (3/10) × 1,80,000.
- Compute the fraction: 3/10 = 0.30. Multiply: 0.30 × 1,80,000 = 54,000.
- Hence partner Q’s capital account is credited with Rs. 54,000.
Common mistake: Assuming goodwill is split only between the outgoing partners, not in the overall profit‑sharing ratio of the partnership.
Concept tested: Goodwill adjustment to capital accounts
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