Question : In case of admission of a partner Sacrificing ratio is used to distribute ___________
Option 1: Premium of Goodwill
Option 2: General Reserve
Option 3: Profit and Loss Account (Credit Balance)
Option 4: Both (2) and (3)

Question

Question : In case of admission of a partner Sacrificing ratio is used to distribute ___________

Option 1: Premium of Goodwill

Option 2: General Reserve

Option 3: Profit and Loss Account (Credit Balance)

Option 4: Both (2) and (3)

Team Careers360 · Accepted Answer

Correct Answer: Premium of Goodwill

Solution : Answer = Premium of Goodwill

At the time of admission of a new partner, the amount of premium for goodwill should be distributed in a sacrificing ratio. The sacrificing ratio determines the share of profits that existing partners are willing to forgo in order to accommodate the new partner, and this sacrifice is reflected in the distribution of the premium of goodwill.
Hence, the correct option is 1.

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Question : In case of admission of a partner Sacrificing ratio is used to distribute ___________Option 1: Premium of Goodwill Option 2: General Reserve Option 3: Profit and Loss Account (Credit Balance) Option 4: Both (2) and (3)

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Question : In case of admission of a partner Sacrificing ratio is used to distribute ___________
Option 1: Premium of Goodwill
Option 2: General Reserve
Option 3: Profit and Loss Account (Credit Balance)
Option 4: Both (2) and (3)

Question : Distribution of 'profit and loss (credit) at the time of change in profit sharing ratio of existing partners is shared by ____(i)_ whereas in case of admission of a partner, it is shared by_(ii)___.

Question : Gain/loss on revaluation at the time of change in profit sharing ratio of existing partners is shared by ____(i)_ whereas in case of admission of a partner, it is shared by _(ii)___.