Ajay and Vijay are partners sharing profits in the ratio of 2:1. Ajay’s son Anil was admitted for ¼ share of which 1/8 was gifted by Ajay to his son. The remaining was contributed by Vijay. Goodwill of the firm is valued at Rs.40000. How much of the goodwill will be credited to each of old partners’ capital account:
A. 2500
B. 5000
C. 20000
D. None of the above
Answer:B
Ajay and Vijay are partners sharing profits in the ratio of 2:1. Ajay’s son Anil was admitted for ¼ share of which 1/8 was gifted by Ajay to his son. The remaining was contributed by Vijay. Goodwill of the firm is valued at Rs.40000. How much of the goodwill will be credited to each of old partners’ capital account:
A. 2500 B. 5000 C. 20000 D. None of the above