If old partners withdraw (40%) of the premium, how much part will remain in their capital accounts?

Correct answer: (60%)

The direct answer is option A, 60%. When the goodwill premium is credited to old partners, the full credited amount initially increases their capital or current accounts. If they withdraw 40% of that premium, the part remaining is the original 100% minus the withdrawn 40%. Thus, remaining part = 100% − 40% = 60%. Option A is correct. Option B, 40%, is the amount withdrawn, not the amount left. Option C, 100%, would be correct only if nothing were withdrawn. Option D, zero, would be correct only if the entire premium were withdrawn. For example, if the credited premium is ₹50,000, withdrawal of 40% means ₹20,000 is withdrawn and ₹30,000, or 60%, remains in the capital accounts. The bank balance falls by the amount withdrawn, while the remaining credit stays in capital. Memory cue: remaining percentage = 100% − withdrawn percentage. Do not confuse the withdrawn portion with the balance left.