If at the time of Kabir's retirement, his individual share of goodwill is valued at Rs. 15,000, and assuming partners share profits equally ( 1:1:1 ) - Accountancy MCQ CUET Accountancy 2026 | ExamTest.live

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If at the time of Kabir's retirement, his individual share of goodwill is valued at Rs. 15,000, and assuming partners share profits equally (1 : 1 : 1) unless specified otherwise, what will be the total valuation of the firm's goodwill?

Solution & Step-by-step Explanation

In the absence of an explicit profit-sharing ratio in the text, partners are assumed to share profits equally (1 : 1 : 1). This means Kabir's profit share is \frac{1}{3} .Given that Kabir's share of goodwill is Rs. 15,000, we can calculate the total goodwill of the firm: Total Goodwill of Firm = \frac{Kabir’s Goodwill Share}{Kabir’s Profit Share} Total Goodwill of Firm = Rs. 15, 000 \times 3 = Rs. 45, 000

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If at the time of Kabir's retirement, his individual share of goodwill is valued at Rs. 15,000, and assuming partners share profits equally (1 : 1 : 1) unless specified otherwise, what will be the total valuation of the firm's goodwill?

15,000

30,000

45,000

60,000

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