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The firm raises goodwill account at ₹120000. Old partners were in (2:1) and the new ratio is (3:2:1). What burden will fall on the new partner when it is written off?

Answer and explanation

Correct answer: ₹20000

The new partner's share is (1/6). When goodwill is written off he will be debited by (120000 \times 1/6 = ₹20000).

Related tags

Raise Writeoff GoodwillNew RatioJournalGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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