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Goodwill is (₹420000). A and B's old ratio is (5:2) and new ratio is (4:3). Who will be credited and by how much?

Answer and explanation

Correct answer: A (₹60000)

A's share decreases from (5/7) to (4/7), so A sacrifices. Credit is (420000 \times \frac{1}{7}=₹60000).

Related tags

GoodwillChange In RatioSacrificing Partner CreditPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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