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B and C have gaining ratio 2:3. Retiring partner's goodwill is ₹50000. How much will C bear?

Answer and explanation

Correct answer: ₹30000

The direct answer is option A: C will bear ₹30,000. The gaining ratio 2:3 tells us how the goodwill burden is divided between B and C. Total parts are 2 + 3 = 5. C has 3 parts, so C’s share is 3/5 of the retiring partner’s goodwill. Calculation: C’s amount = ₹50,000 × 3/5 = ₹30,000. Option A is therefore correct. Option B, ₹20,000, is 2/5 of the amount and belongs to the partner with two gaining parts, not C. Option C, ₹25,000, divides the goodwill equally, which is not the stated ratio. Option D, ₹50,000, charges the complete goodwill to C and ignores B’s share. The key is to use the gaining ratio, not the old profit-sharing ratio.

Related tags

GoodwillGaining RatioNumerical

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