wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

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.

A
True
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
False
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
Open in App
Solution

The correct option is B False
partners of a firm may decide to change their existing profit sharing ratio. For the right to acquire share in the assets and profits of the partnership firm, the partner brings an agreed amount of capital either in cash or in kind. In other words, on the admission of a new partner, the old partners sacrifice a share.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Goodwill
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon