Champa, Roma and Sunakshi are partners sharing profits in the ratio of 5:3:2. Roma retires, the new profit sharing ratio between Champa and Sunakshi will be 1:1. The goodwill of the firm is valued at Rs. 4,00,000, Roma's share of goodwill will be adjusted:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → By debiting only Sunakshi’s Capital Account with Rs. 1,20,000.
The retiring partner is paid for his share of goodwill by the partners who gain from his retirement, in their gaining ratio. So the first job is to see who gains.
Old shares: Champa 5/10, Roma 3/10, Sunakshi 2/10
New shares at 1 : 1: Champa 1/2, Sunakshi 1/2
Champa’s gain = 1/2 − 5/10 = 0
Sunakshi’s gain = 1/2 − 2/10 = 3/10, the whole of Roma’s share
Roma’s share of goodwill = Rs. 4,00,000 × 3/10 = Rs. 1,20,000
The entry is Sunakshi’s Capital A/c Dr. Rs. 1,20,000, To Roma’s Capital A/c Rs. 1,20,000. Champa neither gains nor loses, so she is not debited at all.
Note: NTA picked this question from an NCERT (2026-27) exercise and changed the figures. Do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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