A partnership firm has two existing partners, A and B, sharing profit in the ratio $3:2$. A new partner C is to be admitted. The existing partners agree to give C goodwill of $\text{Rs.}30,000$ in their old profit sharing ratio. How much goodwill will be transferred from partner A to C?

Step-by-step solution

1. Identify the old profit sharing ratio of the existing partners: A:B = 3:2, total parts = 5.
2. Goodwill is to be given in the same ratio, so A contributes $\frac{3}{5}$ of the total goodwill.
3. Calculate A's contribution: $\frac{3}{5}\times 30,000=18,000$.
4. Therefore, the amount of goodwill transferred from A to C is $\text{Rs.}18,000$.

Concept tested: Admission of partner – goodwill transfer

Published 22 September 2026 · How this solution was prepared and checked