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If the firm's total goodwill is ₹50,000 and the retiring partner's share in goodwill is 1/10, how much will the partner receive for goodwill?

Answer and explanation

Correct answer: ₹5,000

The retiring partner’s share of goodwill is calculated as total goodwill × the partner’s share = ₹50,000 × 1/10 = ₹5,000. Therefore, option A is correct. Exam tip: Apply the partner’s fraction directly to the total goodwill, not to any remaining amount.

Related tags

GoodwillRetirement Of PartnerProfit Sharing RatioAccountancyGoodwill SettlementReconstitution Retirement Or Death Of A PartnerClass 12 Mcq

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