Goodwill brought by new partner is distributed among the existing partners in their __________.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Sacrificing Ratio
The new partner pays goodwill to compensate the old partners for the share of profit they give up. So it goes to them in the ratio of what they give up, the sacrificing ratio.
Option (1) Old Ratio — Incorrect. The old ratio applies only when the partners sacrifice in their old ratio (when nothing else is given).
Option (2) New Ratio — Incorrect. The new ratio includes the new partner, who pays the goodwill and cannot share in it.
Option (4) Gaining Ratio — Incorrect. The gaining ratio is used when continuing partners compensate a retiring or deceased partner.
NCERT (2026-27 edition): |