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In goodwill settlement, goodwill is \(₹54000\). The retiring partner’s share is \(\frac{2}{9}\). What is his share?

Answer and explanation

Correct answer: \(₹12000\)

His share of goodwill \(=\frac{2}{9}\times ₹54000\). Now, \(54000\div 9=6000\), so \(\frac{2}{9} imes ₹54000=2\times ₹6000=₹12000\).

Related tags

Goodwill SettlementRetirementProportionFractionsAccountancy

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