Question

Analyse the case given below and answer the question that follow:

Alia, Karan and Shilpa were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Goodwill appeared in their books at the value of ₹ 60,000. Karan decided to retire from the firm. On the date of his retirement, goodwill of the firm was valued at ₹ 2,40,000. The new profit sharing ratio decided among Alia and Shilpa was 2 : 3. Give the answer to the question given below:

What is Alia's gaining or sacrificing ratio:

Options

• `1/10` Gain

• `1/10` Sacrifice

• `4/10` Gain

• `4/10` Sacrifice

Answer 1

`1/10` Sacrifice

Explanation:

Alia = `5/10 - 2/5 = - 1/10`(Sacrifice)