Partnership

Retirement/Death

Medium

Comprehension:

Answer the questions from based on following paragraph

Preeti, Kabir and Shershah are partners in a firm. Kabir retires from the firm. On his date of retirement, Rs. 1,00,000 became due to him. Preeti and Shershah promised to pay him in four yearly equal installments plus interest @ 12% p.a. on the unpaid balance every year at the end of the year, to which he agreed.

In case at the time of retirement of Kabir, his share of goodwill is valued at Rs 15,000, then what will be the total value of firm valued goodwill on his retirement?

15,000

30,000

45,000

60,000

✅ Correct Option: 3

Since the profit sharing ratio is not mentioned, it is assumed that all three partners (Preeti, Kabir, and Shershah) share profits equally.

Each partner's share = $\frac{1}{3}$

Given that Kabir's share of goodwill = Rs. 15,000

Using the formula:

Partner's Share of Goodwill = Total Goodwill × Partner's Profit Share

Rs. 15,000 = Total Goodwill × $\frac{1}{3}$

Total Goodwill = Rs. 15,000 × 3 = Rs. 45,000

To verify: If total goodwill is Rs. 45,000 and there are three equal partners, each partner's share would be Rs. 45,000 ÷ 3 = Rs. 15,000, which matches Kabir's given share.

The answer is Option 3: Rs. 45,000

2022: 15 July Shift 2

A, B and C are partners sharing profits in the ratio of 2:3:1. B retries, then new profit sharing ratio between A and C will be

2026: 23 May Shift 2

A, B and C are partners sharing profits in the ratio of 4 : 3 : 3. After all adjustments, on A's retirement with respect to general reserve, goodwill and revaluation etc., the balances in their capital accounts stood at Rs. 70,000, Rs. 60,000 and Rs. 50,000 respectively. It was decided that the amount payable to A would be brought by B and C in such a way as to make their capitals proportionate to their profit sharing ratio. After A's retirement, the new profit sharing ratio between B and C is 1 : 1. Calculate the amount to be brought by B and C respectively.

2023: 28 May Shift 1

On retirement, the retiring partner's capital account will be credited with :

(A) His/Her Capital Balance

(B) His/Her share of goodwill

(D) his/her share of Reserve

(E) his/her drawings

Choose the correct answer from the options given below :

2026: 12 May Shift 1

What is not included in the sum due to the retiring partner?

2022: 8 Aug Shift 2

In case of retirement or death of a partner, all accumulated profit and losses are transferred in capital account of partners in the:

2026: 20 May Shift 1

Balance Sheet of A, B & C as on 31st March, 2025

Liabilities	Amount	Assets	Amount
Creditors	11,000	Buildings	20,000
Reserve Fund	6,000	Machinery	30,000
A Capital 30,000		Stock	10,000
B Capital 25,000		Patents	11,000
C Capital 15,000	70,000	Debtors	8,000
		Cash	8,000
Total	87,000	Total	87,000

C retires and following revaluations took place.

Patents be valued at Rs.8,000; Machinery at Rs.28,000; and Buildings at Rs.25,000.

Find Revaluation Profit/Loss

In case at the time of retirement of Kabir, his share of goodwill is valued at Rs 15,000, then what will be the total value of firm valued goodwill on his retirement?

Solution

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