The Balance sheet of Himanshu, Pranav and Tushar who were sharing profits in proportion to their capital stood as follows:

Addition Information:
(a) On 1st April 2022, they admitted Rachit into partnership for 1/6th share in future profit.
(b) Rachit will bring ₹25,000 for capital and ₹15,000 for goodwill.
(c) A provision for doubtful debts of 7% was to be made.
(d) Land and building is to be appreciated to 120%.
(e) Machinery is decreased by ₹1,500.

On the basis of above case give answer to question:

Determine the amount compensated by Rachit to Pranav.

₹4,500

The correct answer is option 2- ₹4,500.

Old ratio between old partners is capital ratio which means 35000:21000:14000
                                                                                         =  5:3:2
Rachit share = 1/6
Total share = 1
Remaining share = 1- 1/6
                         =5/6
This 5/6 share is distributed between old partners in old ratio to know their new share
Himanshu = 5/6 X 5/10
                = 25/60
Parnav = 5/6 X 3/10
             = 15/60
Tushar = 5/6 X 2/10
           = 10/60

NEW RATIO = 25/60 :15/60:10/60:1/6
                  = 25/60 :15/60:10/60:10/60
                   = 25:15:10:10 or 5:3:2:2

Sacrificing ratio= Old share - new share

Himanshu sacrifice = 5/10-5/12
                            = (30-25)/60
                            = 5/60
Parnav sacrifice  = 3/10 - 3/12
                        = (18-15)/60
                        = 3/60
Tushar sacrifice  = 2/10 - 2/12
                        = (12-10)/60
                        = 2/60

Scarificing ratio = 5/60:3/60:2/60
                       = 5:3:2

Rachit compensate Parnav for 3/10
Goodwill brought by Rachit = 15,000
Parnav share in Rachit goodwill = 15,000 x 3/10
                                              = 4,500