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 __________.

Memorandum Revaluation Method

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Revaluation Method

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Premium method

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Simple profit method

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Solution

The correct option is B Premium method
According to provisions of Indian Partnership Act,1932, whenever a new partner brings cash for his share of goodwill and the same is shared by old partners in their sacrificing ratio it is called nothing but the premium method.

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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 __________.

The correct option is B Premium methodAccording to provisions of Indian Partnership Act,1932, whenever a new partner brings cash for his share of goodwill and the same is shared by old partners in their sacrificing ratio it is called nothing but the premium method.

The correct option is B Premium method
According to provisions of Indian Partnership Act,1932, whenever a new partner brings cash for his share of goodwill and the same is shared by old partners in their sacrificing ratio it is called nothing but the premium method.