A, B and C are partners in a firm sharing profits in the ratio 7:4:4 . B retires and on the day of his retirement Goodwill existed in the books at 30, - Accountancy MCQ CUET Accountancy 2022 15 July Shift 2 2026 | ExamTest.live

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A, B and C are partners in a firm sharing profits in the ratio 7 : 4 : 4 . B retires and on the day of his retirement Goodwill existed in the books at 30, 000 . B's Capital A/c will be debited by:

Solution & Step-by-step Explanation

Existing goodwill appearing in the books of accounts is written off by debiting all partners' capital accounts in their old profit-sharing ratio.Total existing goodwill = 30, 000 Profit-sharing ratio = 7 : 4 : 4 B's share of profit = \frac{4}{7 + 4 + 4} = \frac{4}{15} $ Amount to be debited to B’s Capital A/c = 30, 000 \times \frac{4}{15} = 2, 000 \times 4 = 8, 000 $

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A, B and C are partners in a firm sharing profits in the ratio 7 : 4 : 4 . B retires and on the day of his retirement Goodwill existed in the books at 30, 000 . B's Capital A/c will be debited by:

Nil

Rs. 2000

Rs. 8000

Rs. 14,000

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