Question

At the time of admission when goodwill account is not being opened in the books of account, credit is given to the old partner in what ratio?

• A. Old profit sharing ratio
• B. New profit sharing ratio
• C. Sacrificing ratio
• D. Equally

Answer 1

Answer: (C)

Sacrificing ratio

Due to admission of the partner change in the profit and loss of the old partner and the ratio which old partner are share profit to incoming partner is called sacrifice ratio.