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A and B have a sacrificing ratio of 3:2. On the admission of new partner C, C brings ₹50,000 as goodwill in cash. How much of the goodwill will B receive according to the sacrificing ratio?

Answer and explanation

Correct answer: ₹20,000

The sacrificing ratio of A:B is 3:2, so B’s share is \(\frac{2}{3+2}=\frac{2}{5}\) of the total goodwill. Therefore, B receives \(₹50,000 \times \frac{2}{5}=₹20,000\). ₹30,000 is A’s share because A’s sacrificing ratio is 3. Exam tip: Divide the incoming partner’s goodwill among the sacrificing partners in proportion to their sacrificing ratios.

Related tags

GoodwillPartnership AccountsAdmission Of PartnerSacrificing RatioNumericalPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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