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A retiring partner’s share of goodwill is 4/13 and the amount credited for that share is ₹52,000. What is the total value of goodwill?

Answer and explanation

Correct answer: ₹1,69,000

The governing relationship is partner’s share of goodwill = total goodwill × partner’s fraction. The credited amount of ₹52,000 represents 4/13 of the total goodwill. Therefore, total goodwill = ₹52,000 ÷ (4/13) = ₹52,000 × 13/4. Dividing ₹52,000 by 4 gives ₹13,000, and multiplying ₹13,000 by 13 gives ₹1,69,000. Thus option C is correct. A direct check confirms the result: ₹1,69,000 × 4/13 = ₹52,000. Option A gives only ₹40,000 when multiplied by 4/13, option B gives ₹48,000, and option D gives ₹64,000. Hence none of the alternatives except C satisfies the stated partner’s share.

Related tags

Total-GoodwillRetirementGoodwill-ShareReverse-CalculationGoodwill SettlementReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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