When a goodwill account is raised at the time of admission of a new partner then credit is given to the old partners in their:

Capital ratio

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Sacrificing ratio

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Old profit sharing ratio

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New ratio

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Solution

The correct option is B Sacrificing ratio
A new partner shall be admitted to the partnership firm by contributing to the assets of the firm or by purchasing the share from the existing partners.
Hence, if the profit sharing ratio of old partners changes after the admission of the new partner, it is the Sacrifice made by the old partners.
The amount in form of 'Goodwill' brought by the new partner is given to the old partners in their Sacrificing ratio.

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