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In goodwill settlement, goodwill of the firm is \(₹75000\). The retiring partner’s share is \(\frac{2}{15}\). How much goodwill will he receive?

Answer and explanation

Correct answer: \(₹10000\)

The retiring partner’s goodwill share is \(\frac{2}{15}\) of \(₹75000\). So, \(\frac{2}{15}\times ₹75000=2\times ₹(75000/15)=2\times ₹5000=₹10000\).

Related tags

Goodwill SettlementRetirementGoodwill ShareFractionAccountancy

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