Question

A and B are equal partners in a firm. They admitted C as one-sixth partner who brought in Rs.1,20,000Rs.1,20,000 is to be paid to the old partners as per profit sacrificing ratio, B will receive __________.

• A. $Rs.60,000$
• B. $Rs.1,20,000$
• C. $Rs.90,000$
• D. Nil

Answer 1

The correct option is B $Rs.1,20,000$

Goodwill brought in by new partner is distributed among old sacrifing partner in their sacrificing ratio.

In the given question-

Old ratio (A and B) = 1 : 1

New ratio (A, B and C) = 3 : 2 : 1

Gaining/ (Sacrificing) ratio = New ratio - Old ratio

A's gain/ (sacrifice) = (3/6) - (1/2) = 0

B's gain/ (sacrifice) = (2/6) - (1/2) = (-1/6)

B will receive Rs. 120000 bring by C as his share of goodwill as only B is sacrificing on the admission of C.