A and N are partners, sharing profits in the ratio 2:1. A's son Ashu was admitted for 1/4th share, half of which was gifted by A to her son. The remaining was contributed by N. The goodwill of the Firm is valued at ₹40,000. How much amount will be credited to the old partner's capital account for goodwill?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Rs. 5,000 each
The new partner’s share of goodwill is paid to the old partners in the ratio in which they gave up their shares (the sacrificing ratio). A gift of part of the share by A does not change this; it only tells us who gave up how much.
Who gave up what:
Ashu’s share = 1/4
Given by A (half of 1/4) = 1/8
Given by N (the remaining half) = 1/8
Sacrificing ratio of A and N = 1/8 : 1/8 = 1:1
Goodwill to be credited:
Ashu’s share of goodwill = Rs. 40,000 × 1/4 = Rs. 10,000
A’s Capital A/c = Rs. 10,000 × 1/2 = Rs. 5,000
N’s Capital A/c = Rs. 10,000 × 1/2 = Rs. 5,000
In the book’s version the partners are Asha and Nisha and the son is Ashish; the figures are the same.
NCERT (2026-27 edition):
|
