When goodwill existing in the books is written off at the time of admission of a partner, it is transferred to partner’ 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’ Capital accounts in their
a) Old Profit sharing ratio
b) New Profit sharing ratio
c) Sacrificing ratio
d) Gaining ratio
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Ans – a)
Explanation:-
Existing Goodwill was purchased by old partners in the past. the it should be written of from the books in their old profit sharing ratio.
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