Multiple choice

A, B and C are partners in the firm sharing profits and losses in 3: 1: 1. They admit D as a partner and the new profit and loss ratio of A, B, C and D become 4 : 3: 2: 1. D brings in the necessary amount for goodwill. Goodwill of the firm is valued at Rs. 3,00,000. In this case ______.

  1. A will be credited with Rs. 60,000

  2. A will be credited with Rs. 30,000

  3. B will be debited with Rs. 60,000

  4. D will be debited with Rs. 60,000
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A Correct answer
AI explanation

The sacrificing ratio is found by subtracting the new ratio from the old ratio. A's sacrifice is 3/5 minus 4/10, which equals 2/10, while B gains 1/10 and C gains 1/10. D brings in Rs. 3,00,000 for goodwill, and A's sacrifice of 2/10 entitles him to Rs. 60,000.

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