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If old partners withdraw (60%) of ₹24000 goodwill brought by C how much amount will remain in business?

Answer and explanation

Correct answer: ₹9600

Direct answer: Option A, ₹9,600. C brings ₹24,000 as goodwill. Old partners withdraw 60%, so the withdrawn amount is ₹24,000 × 60/100 = ₹14,400. The amount left in the business is the original amount minus the withdrawal: ₹24,000 − ₹14,400 = ₹9,600. Option A is correct. Option B, ₹14,400, is the amount withdrawn, not the amount retained. Option C, ₹24,000, would remain only if nothing were withdrawn. Option D, zero, would remain only if 100% were withdrawn. The calculation separates the amount removed from the amount left. Memory cue: after a percentage withdrawal, retained amount equals 100% minus the withdrawal percentage, so 40% of ₹24,000 is ₹9,600.

Related tags

Goodwill WithdrawalRetained AmountNumerical

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