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- ₹8,000 to L.
Goodwill of the firm = 40,000
N's share = 1/5
N's share in goodwill = 40,000 x 1/5
= 8,000
As L sacrifice on N's admission, so N will compensate only L.