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A and B share profits in (3:2). C is admitted for (1/4) share and goodwill is valued at (₹160000). If C does not bring goodwill in cash how much will be debited to C's account?

Answer and explanation

Correct answer: (₹40000)

New partner's share of goodwill is (160000 \times \frac{1}{4}=₹40000). If cash is not brought this amount is debited to the new partner's account.

Related tags

GoodwillAdmissionGoodwill Not BroughtPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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