Amar & Akbar were partners in a firm sharing P & L in ratio 3 : 2. Their Balance Sheet as at March 31, 2023 was as under:
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
Creditor |
50,000 |
Land & Building |
2,50,000 |
|
Bank Loan |
2,00,000 |
Plant & Machinery |
1,80,000 |
|
Amar Capital |
2,80,000 |
Goodwill |
1,00,000 |
|
Akbar Capital |
1,20,000 |
Stock |
60,000 |
|
|
|
Debtor |
40,000 |
|
|
|
Bank |
20,000 |
|
|
6,50,000 |
|
6,50,000 |
They admitted Anthony as a new partner for 1/5 share which he acquired equally from Amar and Akbar.
Based on above information, answer questions.
Goodwill share brought in by Anthony will be distributed in:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Sacrificing ratio
The premium for goodwill brought by the new partner is compensation to the old partners for the share of future profits they give up. So it is shared by the old partners in the ratio in which they sacrifice, the sacrificing ratio. Here Anthony takes 1/10 from each partner, so the sacrificing ratio is 1 : 1.
Option (1) Old Ratio — Incorrect. The old ratio is used only when the sacrifice happens to be in the old ratio; here it is 1 : 1, not 3 : 2.
Option (3) New Ratio — Incorrect. The new partner would then get part of his own premium back.
Option (4) Capital Ratio — Incorrect. Goodwill is never shared in the capital ratio.
NCERT (2026-27 edition): |