Home › Bihar Board Class 12 (Commerce) › Accountancy › Accounting for Partnership Firms: Goodwill › If the sacrificing ratio is not stated in an adm…
If the sacrificing ratio is not stated in an admission problem, it is taken as the
AOld profit ratio
BEqual for all
CCapital ratio
DNew profit ratio
Answer & Solution
Correct answer: A. Old profit ratio
With no other information the old partners are assumed to give up profit in proportion to their old shares.
Related questions
Value that stays with a business even after its owner leaves is which goodwill?Institutional and professional are the two types ofA company pays $50 for a business whose identifiable net assets have a fair value of $38. Private companies in the United States may elect to amortise goodwill overIf the fair value of goodwill falls below its historical cost, the firm must recordUnder IFRS and US GAAP, goodwill of public companies isUnder purchased goodwill accounting, goodwill that a firm builds on its own isGoodwill is recorded in accounts only when a business is