Goodwill is (₹240000). The new partner takes (1/8) share and brings only (₹18000) in cash. Sacrificing ratio is (1:2). How much total will be credited to the second old partner?

Correct answer: (₹20000)

The incoming partner’s share is 1/8, so the required goodwill premium is 1/8 of ₹240,000, equal to ₹30,000. The partner brings only ₹18,000 in cash, leaving ₹12,000 unpaid. The sacrificing ratio is 1:2, so the second old partner receives 2/3 of the total premium. Therefore the total amount credited to the second partner is 2/3 × ₹30,000 = ₹20,000. Option A is correct.

The distinction between total credit and cash received is important. From the ₹18,000 actually brought in cash, the second partner’s proportional share is 2/3 × ₹18,000 = ₹12,000. However, the question asks for the total credit, so the second partner must also receive the appropriate share of the ₹12,000 deficiency, namely ₹8,000. Together, ₹12,000 + ₹8,000 = ₹20,000. Thus ₹12,000 would be plausible only if the question asked for the cash portion alone, not the complete credit due.