Read of the following case study and answer question.
Deepali, Nimisha and Sonam were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Nimisha retired and the new profit sharing ratio between Deepali and Sonam was 2 : 3, On Nimisha's retirement, the goodwill of the firm was valued at ₹1,20,000.
Using the information given in the case study, calculate Deepali's amount of sacrifice or gain in Goodwill.
Answer & explanation
Correct answer: option 1
The correct answer is option (1)- ₹12,000 sacrifice.
Deepali sacrifice = Old share -New share
= 5/10 - 2/5
= (5-4)/10
= 1/10
Deepali share in goodwill = 1,20,000 x 1/10
= ₹12,000