Question

Z is admitted in a firm for 1/4th share in the profits for which he brings ₹ 10,000 towards premium for goodwill. It will be taken by the old partners in ______.

विकल्प

• Old Profit Sharing Ratio 

• New Profit Sharing Ratio 

• Sacrificing Ratio 

• None of the above

Answer 1

Z is admitted in a firm for 1/4th share in the profits for which he brings ₹ 10,000 towards premium for goodwill. It will be taken by the old partners in Sacrificing Ratio.

Explanation:

In the sacrifice ratio, the amount of goodwill brought by the new partner is shared by the sacrificing partner. The "sacrificing ratio" is calculated using the old profit sharing ratio and the new profit sharing ratio.

In the previous profit sharing ratio, accumulated gains and revaluation profit or loss are also shared.