Old ratio is (4:3:1), new ratio is (3:3:2), and goodwill is (₹400000). Who gains?

Correct answer: Only third partner

The old ratio shows the earlier claims of the three partners in total profits, while the new ratio shows their claims after reconstitution. To identify a gaining partner, compare each partner’s old fraction with the new fraction. Here the old ratio is 4:3:1, whose total is 8. Thus the old shares are 4/8, 3/8, and 1/8. The new ratio is 3:3:2, also totalling 8, so the new shares are 3/8, 3/8, and 2/8. The first partner falls from 4/8 to 3/8 and sacrifices 1/8. The second remains at 3/8. The third rises from 1/8 to 2/8 and gains 1/8. Therefore option A is correct.

The goodwill amount of ₹400,000 is not needed merely to identify who gains. It would be used to calculate the monetary compensation: the third partner’s gain is 1/8, so the amount would be ₹50,000 if adjustment were required. A common mistake is to compare only the numerators without considering the common total; here both ratios total eight, so the comparison is especially direct. Only the third partner gains, while the first sacrifices and the second is unchanged.