Determination of sacrificing ratio is necessary when the incoming partner _________________.

brings his premium of goodwill in cash

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fails to bring his capital in cash

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fails to bring his premium of goodwill

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request to raise goodwill a/c

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Solution

The correct option is A brings his premium of goodwill in cash
The incoming partner are brings the goodwill in the business which withdraw by old partner in sacrifice ratio only when extra (premium) goodwill in form of money or cash

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Similar questions

Q. When the incoming partner brings in his share of premium for goodwill in cash, it is adjusted by crediting to ____________ .

Q. Verma and Sharma are partners in a firm sharing profits and losses in the ratio of

5 : 3

. They admitted Ghosh as a new partner for

1 / 5^{t h}

share of profits. Ghosh is to bring in

R s . 20, 000

as capital and

R s . 4, 000

as his share of goodwill premium. Give the necessary Journal entries, when goodwill is paid privately.

(a) A and B are partners in a firm sharing profits in the ratio of 3 : 2. C is admitted as a partner. A and B surrender $\frac{1}{2}$ of their respective share in favour of C. Find the new profit sharing ratio and also the sacrificing ratio.

(b) C is to bring his share of premium for goodwill in cash. The goodwill of the firm is estimated at Rs 4,00,000. Pass necessary entries for the record of goodwill in the above case.

Verma and Sharma are partners in a firm sharing profits and losses in the ratio of 5 : 3. They admitted Ghosh as a new partner for 1/5 share of profits. Ghosh is to bring in Rs 20,000 as capital and Rs 4,000 as his share of goodwill premium. Give the necessary Journal entries :

(a) When the amount of goodwill is retained in the business.

(b) When the amount of goodwill is fully withdrawn.

(d) When goodwill is paid privately.

Explain how will you deal with goodwill when new partner is not in a position to bring his share of goodwill in cash.

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Determination of sacrificing ratio is necessary when the incoming partner _________________.

The correct option is A brings his premium of goodwill in cashThe incoming partner are brings the goodwill in the business which withdraw by old partner in sacrifice ratio only when extra (premium) goodwill in form of money or cash

The correct option is A brings his premium of goodwill in cash
The incoming partner are brings the goodwill in the business which withdraw by old partner in sacrifice ratio only when extra (premium) goodwill in form of money or cash