Goodwill Settlement

A's share increases and B's share remains the same so the whole gain goes to A. Compare old and new shares to find gaining ratio.

The total old ratio is 6+4+2=12, and C's share is 2. Therefore, C's share of goodwill is \(\frac{2}{12}=\frac{1}{6}\). Thus, C's goodwill share = ₹ 168000 × \(\frac{1}{6}\) = ₹ 28000. In retirement questions, first identify the retiring partner's old profit-sharing fraction before applying it to the firm's goodwill.

The second partner's share is five ninth so the burden is ₹ 30000. The capital debit will equal the goodwill burden.

When existing goodwill is written off, the partners’ Capital Accounts are debited in the old profit-sharing ratio. B’s share is \(3/(7+3+2)=3/12=1/4\). Therefore, the debit to B’s Capital Account is \(₹72,000 \times 1/4=₹18,000\). Exam tip: For writing off existing goodwill, use the old ratio, not the new ratio.

A's share rises from half to three fourth while B's share remains the same. Therefore only A bears the goodwill burden.

Total goodwill is ₹ 180000 and three tenth of it is ₹ 54000. First calculate total goodwill and then the partner's share.

The governing rule is gain = new share − old share for each continuing partner. The old total is 8+5+3=16, so C’s old share is 3/16. After B retires, the new ratio A:C is 3:2, giving C a new share of 2/5. Convert to a common denominator: 2/5 = 32/80 and 3/16 = 15/80. Thus C’s gain is 32/80−15/80=17/80. Therefore option B is correct. Option C is C’s old share, option D is C’s new share, and option A is not the difference between the relevant fractions. As a check, A’s gain is 1/10=8/80, and the two gains together equal B’s former share of 5/16.

Direct answer: A's gain is 1/10, so option A is correct. The old ratio A:B:C is 8:5:3, whose total is 16. Therefore A's old share is 8/16 = 1/2. After B retires, A and C share profits in the new ratio 3:2, whose total is 5. A's new share is 3/5. Gain means the increase in A's share: 3/5 − 1/2 = 6/10 − 5/10 = 1/10. Option A is correct. Option B, 8/16, is only A's old share, not the gain. Option C, 4/80, equals 1/20 and does not match the difference. Option D, 3/80, also does not follow from the two ratios. The important step is to convert both shares to comparable fractions before subtracting. Memory cue: new share minus old share gives gain.

The gaining ratio compares the increases in the shares of the continuing partners, not their old or new profit-sharing ratios. The old shares are A=8/16=1/2 and C=3/16. Under the new ratio 3:2, A receives 3/5 and C receives 2/5. A’s gain is 3/5−1/2=6/10−5/10=1/10=8/80. C’s gain is 2/5−3/16=32/80−15/80=17/80. Therefore the gaining ratio A:C is 8:17, so option C is correct. Option A is the old ratio of A and C’s numerators, option B reverses or misstates the gains, and option D incorrectly assumes equal increases.

The governing rule is that the retiring partner’s goodwill is borne by the continuing partners in their gaining ratio. The total number of gaining parts is 8+17=25. The partner with seventeen parts therefore bears 17/25 of ₹75,000. First divide ₹75,000 by 25 to obtain ₹3,000 per part; then multiply by 17: ₹3,000×17=₹51,000. Thus option C is correct. Option A does not correspond to 17/25, option B would represent only 10/25 of the goodwill, and option D places the entire goodwill burden on one partner. The remaining ₹24,000 is borne by the partner with eight parts, and ₹24,000+₹51,000 equals the full ₹75,000.

Old goodwill belongs to all old partners and new goodwill burden is borne by gainers. Remember this distinction.

Before retirement, C’s share was \(2/8\). Under the new ratio 4:3:1, C’s share becomes \(1/8\). Thus, C sacrifices \(2/8-1/8=1/8\). In contrast, A’s share increases from \(3/8\) to \(4/8\), and B’s from \(2/8\) to \(3/8\), so both gain. Exam tip: Sacrifice = old share − new share; a positive difference indicates the sacrificing partner.

A and B's shares increase while C's share decreases. Therefore the new goodwill burden falls only on gaining partners A and B.

Under the old ratio, A’s share was 3/8 and B’s share was 2/8. Under the new ratio, A’s share is 4/8 and B’s share is 3/8. Therefore, A’s gain is 4/8 − 3/8 = 1/8 and B’s gain is 3/8 − 2/8 = 1/8. Hence, their gaining ratio is 1/8:1/8 = 1:1. Exam tip: calculate each continuing partner’s gain as new share minus old share; the retiring partner’s old share is not directly used in this comparison.

The sacrificing partner will not bear goodwill burden and the two gainers will bear it equally. So each bears ₹ 44000.

A and B's new ratio is the same as their old A B ratio. So C's share is gained in the same ratio 3:2.

New goodwill burden must always be in gaining ratio. New ratio is correct only if it is also the actual gaining ratio.

This uses the average-profit method of goodwill valuation. First calculate the firm’s total goodwill: average profit × years’ purchase = ₹84,000×2=₹1,68,000. The retiring partner is entitled to 5/14 of that goodwill. Since ₹1,68,000÷14=₹12,000, his claim is ₹12,000×5=₹60,000. Therefore option C is correct. Option B is only one-half of the total goodwill and does not use the partner’s 5/14 share. Option D is the average profit before applying the two-year factor, while option A does not follow from the stated fraction. The calculation assumes the question asks only for the goodwill claim and does not include capital, reserves, revaluation or other settlement items.

C's new share is two fifth and old share is two twelfth which is one sixth. The difference is seven thirtieth.

The governing rule for a continuing partner’s gain is new share minus old share. The old ratio totals 5+5+2=12, so A’s old share is 5/12. After B retires, the new ratio A:C is 3:2, giving A a new share of 3/5. Use a common denominator of 60: 3/5=36/60 and 5/12=25/60. Therefore A’s gain is 36/60−25/60=11/60, making option A correct. Option C is only A’s old share, option B is not A’s new share because A receives 3/5, and option D results from an incorrect subtraction. As a check, C’s gain is 2/5−2/12=7/30, and the two gains together equal B’s old share of 5/12.

The direct answer is A, 11:14. The old total is 5+5+2 = 12, so A had 5/12 and C had 2/12 = 1/6. The new A:C ratio is 3:2, whose total is 5, so A now has 3/5 and C now has 2/5. A’s gain is 3/5 − 5/12 = 36/60 − 25/60 = 11/60. C’s gain is 2/5 − 1/6 = 12/30 − 5/30 = 7/30 = 14/60. Since both gains have denominator 60, their gaining ratio is 11:14. Option A is correct. B is the new ratio, not the gain. C is the old A:C ratio, not the gain. D incorrectly treats both gains as equal. Memory cue: calculate each partner’s new share minus old share, then compare the gains.

Direct answer: option B, ₹56,000. Goodwill is the value of the firm’s reputation. When A and C gain in the ratio 11:14, C’s gain is 14 parts out of the total 25 parts. Step 1: total parts = 11 + 14 = 25. Step 2: C’s fraction = 14/25. Step 3: C’s burden = ₹1,00,000 × 14/25 = ₹56,000. Option A, ₹44,000, represents 11/25 of the goodwill and therefore belongs to A, not C. Option B is correct because C has 14 gaining parts. Option C, ₹60,000, does not follow from the given ratio. Option D, ₹1,00,000, would wrongly charge the whole goodwill to C. The supplied answer and calculation are consistent. Memory cue: in a gaining ratio, use the concerned partner’s parts divided by total parts.

The statement is correct. The retiring partner’s goodwill claim is calculated according to that partner’s old share in the firm’s goodwill. The continuing partners bear this adjustment in their gaining ratio because they acquire the retiring partner’s share of future profits. The same basic principle also applies on the death of a partner, so option C is incorrect. Exam tip: Remember, ‘claim in old ratio, burden in gaining ratio.’

In a journal entry total debit and total credit must be equal. This rule also applies to goodwill adjustment.

B's old share is two tenth and new share is one fifth which is two tenth. Therefore B has zero gain.