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When Goodwill Exist in the Business

Goodwill alre...

Question

Goodwill already appearing in balance sheet is distributed among old partners in ______ ratio.

A

old

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B

new

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C

sacrificing

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D

gaining

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Solution

The correct option is A
old

Goodwill already appearing in balance sheet is distributed among old partners in old ratio.

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Similar questions

Q. New incoming partner pays his share of goodwill in cash and profit sharing ratio of old partner is changed, Goodwill be distributed among old partners ____________.

Q. Credit balance of Profit & Loss Account shown in the liabilities side is accumulated profit and at the time of admission of a new partner, it is fully distributed among old partners in their old ratio.

Q. The new partner brings cash for his share of goodwill and the same is shared by the old partners in their sacrificing ratio. The method is called __________.

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:

Q. When goodwill is revalued at the time of admission of a partner, how goodwill is distributed amongst the old partners?

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