Rakesh and Sachin are partners sharing profits in the ratio of 4:1. Vikas was
admitted for 1/4 share of which 3/4 was gifted by Rakesh. The remaining
was contributed by Sachin. Goodwill of the firm is valued at ` 40,000. How
much amount for goodwill will be credited to Sachins Capital account?
(a) ` 2,500. (b) ` 7,500.
(c) ` 10,000. (d) ` 30,000.
Dear Student,
THe correct answer is- Option (c), i.e. ₹10,000
Working Notes:
Vikas's total share = 1/4
Rakesh's sacrifice = 1/4 x 3/4 = 3/16
Sachin's sacrifice = 1/4 - 3/16 = 1/16
Sacrificing ratio(Rakesh:Sachin) = 3:1
Amount credited to Sachin's capital account = 40,000 x 1/4
= ₹10,000
Regards
THe correct answer is- Option (c), i.e. ₹10,000
Working Notes:
Vikas's total share = 1/4
Rakesh's sacrifice = 1/4 x 3/4 = 3/16
Sachin's sacrifice = 1/4 - 3/16 = 1/16
Sacrificing ratio(Rakesh:Sachin) = 3:1
Amount credited to Sachin's capital account = 40,000 x 1/4
= ₹10,000
Regards