Gaining partners capital accounts are debited in the ____________ ratio to give effect to treatment of goodwill.

None of the above

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Old Ratio

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Gaining Ratio

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Sacrificing ratio

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Solution

The correct option is C
Gaining Ratio

Gaining partners capital accounts are debited in the new profit sharing ratio to give effect to treatment of goodwill.

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If the value of goodwill is Rs. 3,00,000. The PSR of A, B and C is 1:1:1. A retires and new profit sharing ratio is 1:1. B and C Capital accounts will be debited with what amount?

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Q. Select the most appropriate answer from the alternatives given below :

Gaining ratio is the ratio in which ________________.
a) the old partner gains on admission of a new partner
b) the goodwill of a new partner on admission is credited to old partners
c) the continuing partner’s benefits on retirement or death of a partner
d) none of the above

Q. A and B are equal partners in a firm. They admitted C as 1/6 partner who brought in Rs. 50,000 as goodwill. The new profit sharing ratio is 3 : 2 : 1. If goodwill of Rs. 50,000 is to be paid to the old partners as per sacrificing ratio, B will receive:

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Gaining partners capital accounts are debited in the ____________ ratio to give effect to treatment of goodwill.

The correct option is C Gaining Ratio Gaining partners capital accounts are debited in the new profit sharing ratio to give effect to treatment of goodwill.

The correct option is C
Gaining Ratio

Gaining partners capital accounts are debited in the new profit sharing ratio to give effect to treatment of goodwill.