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If the firm’s goodwill is ₹84,000 and the deceased partner’s share in goodwill is \(\frac{1}{7}\), what is the value of the deceased partner’s share of goodwill?

Answer and explanation

Correct answer: ₹12,000

The deceased partner’s share of goodwill = Total goodwill × Partner’s share = ₹84,000 × \(\frac{1}{7}\) = ₹12,000. Therefore, option A is correct. ₹14,000 results from an incorrect division, while ₹84,000 represents the firm’s total goodwill, not the partner’s share. Exam tip: To calculate a partner’s share of goodwill, multiply total goodwill by the partner’s profit-sharing fraction.

Related tags

Goodwill SettlementPartner RetirementAccountancy NumericalsReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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