Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:
Sacrificing ratio is used to distribute which of the following?
Options:
Reserves
Goodwill
Revaluation Profit
All of the above
Correct Answer:
Goodwill
Explanation:
The sacrificing ratio is used to distribute goodwill in case of admissions of the partners. The sacrificing ratio is the ratio in which the old partners sacrifice a part of their share for the new partner at the time of admission.