Read the following case study and answer question. (Q41-Q45) Deepali, Nimisha and Sonam were partners in a firm sharing profit in the ratio of 5:3: 2. Nimisha retired and the new profit sharing ratio between Deepali and Sonam was 2 : 3, On Nimisha's retirement, the goodwill of the firm was valued at ₹1,20,000. Q43. Using the information given in the case study, calculate Deepali’s amount of sacrifice or gain in Goodwill

To find Deepali's sacrifice or gain, compare her old ratio of 5/10 to her new ratio of 2/5. Converting to common denominators, her old share was 5/10 and her new share is 4/10, resulting in a sacrifice of 1/10. The total goodwill of the firm is valued at 120,000, so multiplying this sacrifice by the total goodwill gives 1/10 times 120,000. The result is a sacrifice of 12,000.

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