Initial Profit Sharing Ratio:
- L's share = 53
- M's share = 52
N's Admission:
N is admitted for 51th share, which is acquired from L only (not from both partners).
This means L sacrifices 51th share to N, while M makes no sacrifice.
Calculation of Goodwill Payment:
Total Goodwill of the firm = Rs. 40,000
N's share in goodwill = 51×40,000 = Rs. 8,000
Since N's entire share comes from L's sacrifice, N must compensate L for giving up part of his share in the firm's profits.
Important: Goodwill is paid only to the sacrificing partner(s). Here, only L is sacrificing, so N pays Rs. 8,000 to L alone.
M receives nothing because M has not given up any share of his profit.
Answer: Option 2 - Rs. 8,000 to L