X and Y are partners sharing profits in the ratio of 3 : 1. They admit Z as a partner who pays ₹ 4,000…
X alone receives the goodwill premium of ₹ 4,000. X's sacrifice is 3/4 − 2/4 = 1/4, while Y's share remains 1/4, so Y makes no sacrifice.
Choose your answer
X and Y are partners sharing profits in the ratio of 3 : 1. They admit Z as a partner who pays ₹ 4,000 as goodwill. The new profit ratio being 2 : 1 : 1 among X, Y and Z respectively. The amount of goodwill will be credited to __________ .
Answer and explanation
Correct answer B
X alone receives the goodwill premium of ₹ 4,000. X's sacrifice is 3/4 − 2/4 = 1/4, while Y's share remains 1/4, so Y makes no sacrifice.
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Maharashtra and Goa SET (MH SET)