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If B's goodwill is ₹ 100000 and A C's gaining ratio is 11:14 then how much burden will C bear?

Answer and explanation

Correct answer: ₹ 56000

Direct answer: option B, ₹56,000. Goodwill is the value of the firm’s reputation. When A and C gain in the ratio 11:14, C’s gain is 14 parts out of the total 25 parts. Step 1: total parts = 11 + 14 = 25. Step 2: C’s fraction = 14/25. Step 3: C’s burden = ₹1,00,000 × 14/25 = ₹56,000. Option A, ₹44,000, represents 11/25 of the goodwill and therefore belongs to A, not C. Option B is correct because C has 14 gaining parts. Option C, ₹60,000, does not follow from the given ratio. Option D, ₹1,00,000, would wrongly charge the whole goodwill to C. The supplied answer and calculation are consistent. Memory cue: in a gaining ratio, use the concerned partner’s parts divided by total parts.

Related tags

Goodwill-SettlementBurden-SharingNumerical

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