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If the goodwill of a firm is ₹1,80,000 and the deceased partner’s share in goodwill is 1/9, what is the value of his share?

Answer and explanation

Correct answer: ₹20,000

The deceased partner’s share in goodwill is calculated as: Total goodwill × Share = ₹1,80,000 × 1/9 = ₹20,000. Therefore, option A is correct. The nearby distractor ₹18,000 would represent 1/10 of the goodwill, not 1/9. Exam tip: To find a partner’s goodwill share, multiply the firm’s total goodwill by the partner’s profit-sharing fraction.

Related tags

AccountancyPartnership AccountsGoodwillDeceased Partner ShareRetirement Or DeathDeceased Partner’s ShareDeceased Partner S ShareReconstitution Retirement Or Death Of A Partner

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