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Goodwill

Goodwill brou...

Question

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

A

old profit sharing ratio

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B

sacrificing ratio

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C

new profit sharing ratio

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D

capital ratio

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Solution

The correct option is B
sacrificing ratio

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

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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 ?

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

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 __________.

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