Akash and Nitesh are partners sharing profits in the ratio of 2:1. Kamlesh was admitted for 1/4 share, of which 1/8 was gifted by Akash. The remaining was contributed by Nitesh. The goodwill of the firm is valued at Rs. 1,60,000. How much amount of premium for goodwill will be credited to Nitesh's Capital Account?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Rs. 20,000
The premium for goodwill brought in by a new partner goes to the partners who give up their share for him, in the proportion of what each gives up. Here each old partner gives up 1/8.
Kamlesh's share = 1/4
Gifted by Akash = 1/8
Given by Nitesh = 1/4 − 1/8 = 1/8
Credit to Nitesh = Rs. 1,60,000 × 1/8 = Rs. 20,000
Akash is credited the same Rs. 20,000, so the total premium is Rs. 40,000 (Rs. 1,60,000 × 1/4).
Note: NTA picked this question from an NCERT (2026-27) exercise and changed the figures. Do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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