Question

Pulkit and Ravinder were partners in a firm sharing profits and losses in the ratio of 3 : 2. Sikander was admitted as a new partner for `1/5`th share in the profits of the firm. Pulkit, Ravinder and Sikander decided to share future profits in the ratio of 2 : 2 : 1. Sikander brought ₹ 5,00,000 as his capital and ₹ 10,00,000 as his share of premium for goodwill. The amount of premium for goodwill that will be credited to the old partners’ capital accounts will be:

Options

• Pulkit’s Capital Account ₹ 10,00,000.

• Pulkit’s Capital Account ₹ 6,00,000 and Ravinder’s Capital Account ₹ 4,00,000.

• Pulkit’s Capital Account ₹ 5,00,000 and Ravinder’s Capital Account ₹ 5,00,000.

• Pulkit’s Capital Account ₹ 2,00,000.

Answer 1

Pulkit’s Capital Account ₹ 10,00,000.

Explanation:

Pulkit’s Sacrifice = `3/5-2/5=1/5`

Ravinder’s Sacrifice = `2/5-2/5` = Nil

As Pulkit is the only sacrificing partner.

Pulkit’s capital account will be credited with ₹ 10,00,000 as a premium for goodwill.