Goodwill is (₹100000) and the new partner takes (1/5) share. He brings (₹12000) in cash. Sacrificing ratio is (3:1). How much will the first old partner receive from the cash part?

Correct answer: (₹9000)

The direct answer is option A, ₹9,000. The new partner’s total goodwill premium is found first: Total goodwill × new partner’s share = ₹1,00,000 × 1/5 = ₹20,000. However, the question asks for the amount from the cash part actually brought, which is ₹12,000. This cash is distributed to the old partners in the sacrificing ratio 3:1. The total parts are 3 + 1 = 4. The first old partner receives 3/4 of ₹12,000: ₹12,000 × 3/4 = ₹9,000. Option A is correct. Option B, ₹15,000, would be more than the first partner’s proper three-fourths share. Option C, ₹12,000, gives the entire cash amount to the first partner and ignores the second partner. Option D, ₹20,000, is the total goodwill premium required, not the first partner’s cash distribution. The goodwill calculation explains the full premium, but because only ₹12,000 is brought in cash, the cash distribution is based on ₹12,000. Exam cue: distribute actual cash brought in the sacrificing ratio.