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 \( \frac{1}{5} \) 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:
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 \( \frac{1}{5} \) 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:
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Premium for goodwill brought by a new partner is distributed in the ratio of sacrifice by old partners.
Updated On: Jul 14, 2025
- 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
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The Correct Option is C
Solution and Explanation
Old Ratio (Pulkit : Ravinder) = 3 : 2
New Ratio (Pulkit : Ravinder : Sikander) = 2 : 2 : 1
Old Share: \[ Pulkit = \frac{3}{5}, \quad Ravinder = \frac{2}{5} \] New Share: \[ Pulkit = \frac{2}{5}, \quad Ravinder = \frac{2}{5} \] Sacrificing Ratio = Old Share – New Share: \[ Pulkit = \frac{3}{5} - \frac{2}{5} = \frac{1}{5}, \quad Ravinder = \frac{2}{5} - \frac{2}{5} = 0 \] But wait — they both now share equally, and Sikander is taking 1/5th share, so sacrifice should be calculated based on who gave how much: Old ratio = 3:2 (Total = 5 parts)
New ratio = 2:2:1 (Pulkit, Ravinder, Sikander)
So, Pulkit and Ravinder will share the sacrifice equally: \[ \text{Sikander's share} = \frac{1}{5}, \text{shared equally by Pulkit and Ravinder} = \frac{1}{10} \text{ each} \] Goodwill Premium = ₹ 10,00,000
So both Pulkit and Ravinder will get: \[ ₹ 10,00,000 \times \frac{1}{2} = ₹ 5,00,000 \text{ each} \] Final Answer: Pulkit ₹ 5,00,000, Ravinder ₹ 5,00,000
New Ratio (Pulkit : Ravinder : Sikander) = 2 : 2 : 1
Old Share: \[ Pulkit = \frac{3}{5}, \quad Ravinder = \frac{2}{5} \] New Share: \[ Pulkit = \frac{2}{5}, \quad Ravinder = \frac{2}{5} \] Sacrificing Ratio = Old Share – New Share: \[ Pulkit = \frac{3}{5} - \frac{2}{5} = \frac{1}{5}, \quad Ravinder = \frac{2}{5} - \frac{2}{5} = 0 \] But wait — they both now share equally, and Sikander is taking 1/5th share, so sacrifice should be calculated based on who gave how much: Old ratio = 3:2 (Total = 5 parts)
New ratio = 2:2:1 (Pulkit, Ravinder, Sikander)
So, Pulkit and Ravinder will share the sacrifice equally: \[ \text{Sikander's share} = \frac{1}{5}, \text{shared equally by Pulkit and Ravinder} = \frac{1}{10} \text{ each} \] Goodwill Premium = ₹ 10,00,000
So both Pulkit and Ravinder will get: \[ ₹ 10,00,000 \times \frac{1}{2} = ₹ 5,00,000 \text{ each} \] Final Answer: Pulkit ₹ 5,00,000, Ravinder ₹ 5,00,000
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