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)
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.
Question : At the time of reconstruction of a partnership due to admission of a new partner, the balance of the Workmen Compensation Reserve will be transferred to:
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 : When a new partner is admitted the balance of 'General Reserve' appearing in the Balance Sheet at the time of admission is credited to
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)_____.
Question : When goodwill existing in the books is written off at the time of admission of a partner it is transferred to Partners' Capital Accounts in their
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