X and Y are partners in the firm. Their profit sharing ratio is 2 : 3. Rs. 10,000 goodwill is appearing in the books. Z becomes new partner in the firm for $${\frac{1}{5}^{{\text{th}}}}$$ share. His share of goodwill is calculated as Rs. 15,000. Amount of goodwill credited to old partners capital account will be

The correct answer is B. Rs. 40,000.

The total goodwill is Rs. 10,000. The new partner, Z, is taking a 1/5 share, so his share of the goodwill is Rs. 10,000 x 1/5 = Rs. 2,000. The old partners, X and Y, are taking the remaining 4/5 share, so each of their shares of the goodwill is Rs. 10,000 x 4/5 = Rs. 8,000.

The old partners’ capital accounts will be credited with the amount of goodwill that they are taking. X’s capital account will be credited with Rs. 8,000, and Y’s capital account will be credited with Rs. 8,000.

Here is a step-by-step solution:

1. Calculate the total goodwill:

Goodwill = Rs. 10,000

1. Calculate the new partner’s share of the goodwill:

New partner’s share = Total goodwill x New partner’s share = Rs. 10,000 x 1/5 = Rs. 2,000

1. Calculate the old partners’ shares of the goodwill:

Old partners’ shares = Total goodwill – New partner’s share = Rs. 10,000 – Rs. 2,000 = Rs. 8,000

1. Calculate the amount of goodwill to be credited to each old partner’s capital account:

Old partner’s share of goodwill / Old partners’ number = Rs. 8,000 / 2 = Rs. 4,000

1. Credit each old partner’s capital account with the amount of goodwill that they are taking:

X’s capital account = Rs. 4,000

Y’s capital account = Rs. 4,000