Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:
If the incoming partner brings the amount of goodwill in cash and also a balance exists in Goodwill A/c, then the Goodwill A/c in the books is written off among the old partners in which ratio?
Options:
In new profit-sharing ratio
In old profit-sharing ratio
In sacrificing ratio
In gaining ratio
Correct Answer:
In old profit-sharing ratio
Explanation:
If the incoming partner brings the amount of goodwill in cash and also a balance exists in Goodwill A/c, then the Goodwill A/c in the books is written off among the old partners in old profit sharing ratio.