Asha and Nisha are partners sharing profit in the ratio 2:1 Asha's son Ashish was admitted for 1/4 share - Accountancy - Reconstitution- Admission of a Partner

Question

Asha and Nisha are partners sharing profit in the ratio 2:1 Asha's
son Ashish was admitted for 1/4 share of which 1/8 was gifted by
Asha to her son The remaining was contributed by Nisha Goodwill of
the firm in valued at Rs 40000 How much of the goodwill will be
credited to the old partner's capital account

Neha Chopra · Accepted Answer

Dear Student

Goodwill adjustment shall be done as follows:

Goodwill Adjustment

Total
Goodwill

40,000

Share of Goodwill of
Ashish
(40,000 x 1/4)
10,000

Sacrificing Ratio

1:1

Distribution in
Sacrificing Ratio in capital accounts of :

Asha
(10,000 x 1/2)
5,000

Nisha
(10,000 x 1/2)
5,000

Regards

Goodwill Adjustment
Total Goodwill		40,000
Share of Goodwill of Ashish	(40,000 x 1/4)	10,000
Sacrificing Ratio		1:1

Distribution in Sacrificing Ratio in capital accounts of :
Asha	(10,000 x 1/2)	5,000
Nisha	(10,000 x 1/2)	5,000