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.

Rs 12,000 sacrifice

The correct answer is option (1) : Rs 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