L and M are partners sharing profits in the ratio 3:2. N is admitted as a partner for 1/5th of the share which is acquired from L. Goodwill of the firm is valued at ₹40,000 on N's admission. N will have to pay for Goodwill:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Rs. 8,000 to L
Goodwill brought by a new partner goes to the partners who give up their share, in the ratio of their sacrifice. Here N takes his whole 1/5 share from L, so L alone sacrifices and M gets nothing.
N’s share of goodwill = Rs. 40,000 × 1/5
= Rs. 8,000, all paid to L
NCERT (2026-27 edition): |