Question : Sacrificing ratio is calculated because:
Option 1: Revaluation Account profit can be credited to sacrificing partners
Option 2: Goodwill brought in by the incoming partner can be credited to the new partner
Option 3: Goodwill brought in by the incoming partner can be credited to the sacrificing partners
Option 4: Both (1) and (3)
Correct Answer: Goodwill brought in by the incoming partner can be credited to the sacrificing partners
Solution : Answer = Goodwill brought in by the incoming partner can be credited to the sacrificing partners
The sacrificing ratio is calculated to determine how the goodwill brought in by the incoming partner will be shared among the existing partners. It ensures that the sacrificing partners receive their appropriate share of the goodwill brought in by the new partner, thereby maintaining equity in the partnership. Hence, the correct option is 3.
Question : Premium for goodwill brought by newly admitted partner should be:
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 : 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 : 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 : At the time of admission of a partner, the balance of the Investments Fluctuation Reserve, after meeting the loss on revaluation of investments is transferred to _____________of __________in their_____________.
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