When goodwill existing in the books is written off at the time of admission of a partner, it is transferred to Partner’s Capital Accounts in their.
When goodwill existing in the books is written off at the time of admission of a partner, it is transferred to Partner’s Capital Accounts in their.
a) Old Profit Sharing Ratio
b) New Profit Sharing Ratio
c) Sacrificing Ratio
d) Gaining Ratio
Anurag Pathak Changed status to publish June 1, 2023
Ans – a)
Explanation:-
Existing Goodwill was purchased before the admission of the new partner. Thus it must be written off in the old profit-sharing ratio at the time of admission of the new partner.
Anurag Pathak Changed status to publish June 1, 2023
