Question : If the new partner brings his share of goodwill in cash, it will be shared by old partners in -
Option 1: Old profit sharing ratio
Option 2: New profit sharing ratio
Option 3: Ratio of sacrifice
Option 4: In Capital ratio
Correct Answer: Ratio of sacrifice
Solution : The new partner's goodwill and premium are kept in the company: The amount is credited to the Capital Accounts of the former partners in their sacrifice ratio if the new partner pays his share of goodwill in cash and this sum is kept in the business.
Hence the correct answer is option 3.
Question : If the new partner brings the goodwill amount in cash and the goodwill account still has a balance, the goodwill account is wiped down among the previous partners in -
Question : When a new partner brings his share of goodwill in cash, the amount is debited to -
Question : The ratio in which a partner surrenders his share of profit in favour of partners is known as
Question :
Accumulated losses on the retirement of a partner are
Question : A, B and C are partners sharing profits in a ratio of 5:3:2. D is admitted and new profit sharing ratio is agreed at 1:2:2:1. Goodwill is valued at Rs 1,20,000. What entry will be passed if a goodwill account is to be raised and written off?
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