At the time of change in profit sharing

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Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:

At the time of change in profit sharing ratio, existing goodwill is written off among the partners in:

Options:

Sacrificing Ratio

Equal Ratio

Old Ratio

Gaining Ratio

Correct Answer:

Old Ratio

Explanation:

The correct answer is Option (3) - Old Ratio

Existing goodwill is written off by debiting old partners capital account in their old ratio and crediting goodwill.