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Question

Accountancy Question on Goodwill

P, Q and R are Partners sharing Profits and losses equally. R retires and Goodwill is appearing in the books at ₹ 30,000. Goodwll of the firm is valued at ₹ 1,50,000. Calculate the net amount to be credited to R's Capital A/c for adjustment of goodwill:

A

₹ 60,000

B

₹ 50,000

C

₹ 40,000

D

₹ 10,000

Answer

₹ 40,000

Explanation

Solution

The correct option is (C) :₹ 40,000.