Goodwill brought in by an incoming partner in cash for joining a partnership firm is taken away by the old partners in their ______.

Capital ratio

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New profit sharing ratio

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Sacrificing ratio

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Old profit sharing ratio

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Solution

The correct option is C Sacrificing ratio
When the Amount of Goodwill is received by the Firm and is withdrawn by the Old Partners: The amount of goodwill brought in by the incoming partner is credited to the existing partners with their respective share of goodwill and they may withdraw the amount fully or partially.

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Similar questions

Q. Goodwill brought in by incoming partner in cash for joining in a partnership firm is taken away by the old partners in their new profit sharing ratio.

Q. Consider the following statements :
1. At the time of admission of new partner undistributed profit or losses are distributed to all partners in new ratio.
2. Profit or loss on revaluation of assets and liabilities is transferred to old partner's capital account in old profit sharing ratio.
3. Goods brought in by incoming partner in cash for joining in a partnership firm is taken away by the old partner's in their new profit-sharing ratio.
Which of the above statement/s is/are true ?

Goodwill brought in by an incoming partner in cash for joining in a partnership firm is can be taken by old partners in their -

Goodwill brought in by the incoming partner in cash for joining in a partnership firm is adjusted by giving affect to old partners capital accounts in:

A and B are partners in a firm, sharing Profits and Losses in the ratio of 3 : 2. Their capitals are Rs 1,80,000 and Rs 1,40,000 respectively. They admit X in partnership on the conditions that he will bring Rs 67,500 as goodwill and Rs 1,50,000 as capital and will get $\frac{1}{4}$ share in the profits of the firm. Assuming that the capital and goodwill have been brought in cash by the new partner, pass the necessary journal entries and find out new profit sharing ratio of partners when (A) Goodwill is retained in the firm and (B) Goodwill is withdrawn by old partners.

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