Multiple choice

A and B are partners sharing the profit in the ratio of 3 : 2. They take C as the new partner who brings in 50,000 against capital and 20,000 against goodwill. New profit sharing ratio is 1: 1: 1 . In what ratio will this amount of goodwill be shared among the old partners ?

  1. 16,000: 4,000. 

  2. 10,000: 10,000. 

  3. Old partners will not get any share in the goodwill brought in by C.

  4. 12000: 8000. 
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A Correct answer
AI explanation

Find the sacrifice made by the old partners by subtracting their new shares from their old shares, where A gives up 4/15 and B gives up 1/15, resulting in a sacrificing ratio of 4:1. Multiply the total goodwill of Rs. 20,000 by the new partner to find the distribution, giving Rs. 16,000 to A and Rs. 4,000 to B.

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