Goodwill is (₹150000). The new partner takes (1/5) share and brings only (₹18000) in cash. Sacrificing ratio is (2:3). How much total will be credited to the second old partner?

Correct answer: (₹18000)

The incoming partner’s agreed share is 1/5, so the goodwill premium required from that partner is 1/5 of ₹150,000, which equals ₹30,000. The partner brings only ₹18,000 in cash, leaving a shortfall of ₹12,000. The sacrificing ratio is 2:3, so the second old partner’s share of the total premium is 3/5. The total credit due to that partner is therefore 3/5 of ₹30,000 = ₹18,000. Of this, ₹10,800 comes from the cash actually brought, and the remaining ₹7,200 is adjusted for the unpaid portion, if the accounting treatment requires that deficiency. Hence option A is correct.

The key word is “total.” If the question asked only for the cash premium actually distributed, the second partner would receive 3/5 of ₹18,000, or ₹10,800. But it asks for the total credit, including the amount due for the full agreed premium. The goodwill valuation is therefore relevant, and the shortfall cannot simply be ignored. This distinction explains why ₹18,000, rather than ₹10,800, is the correct choice under the stated wording.