Question

A and B are equal partners in a firm. They admitted C as 1/6 partner who brought in Rs. 50,000 as goodwill. The new profit sharing ratio is 3 : 2 : 1. If goodwill of Rs. 50,000 is to be paid to the old partners as per sacrificing ratio, B will receive:

• A. Rs. 30,000
• B. Rs. Nil
• C. Rs. 45,000
• D. Rs. 50,000

Answer 1

The correct option is D Rs. 50,000

'C' can be been admitted in the partnership firm either by purchasing his share from the existing partners or by contributing towards the assets of the firm.

Let's calculate the sacrificing ratios first.

Sacrificing Ratio of 'B'= $1/2$-$2/6$=$1/6$

However, sacrificing ratio of 'A' =$1/2$-$3/6$= $0$.

Since, the sacrifice is made by 'B' only, the Goodwill amount brought in by 'C', i.e., Rs. 50000 shall be paid to 'B' only.