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If the firm's goodwill is ₹36,000 and the retiring partner's share in goodwill is \(\frac{1}{9}\), how much will the partner receive for goodwill?

Answer and explanation

Correct answer: ₹4,000

The retiring partner’s share in goodwill = ₹36,000 × \(\frac{1}{9}\) = ₹4,000. Therefore, option A is correct. Option B results from dividing ₹36,000 by 6, not by 9. Exam tip: To find \(\frac{1}{n}\) of an amount, divide the amount by n.

Related tags

Goodwill SettlementRetirement Of PartnerPartnership AccountsFraction CalculationReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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