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प्रश्न
Sacrificing ratio is used to distribute ______ in case of admission of a partner.
विकल्प
Reserves
Goodwill
Revaluation Profit
Balance in Profit and Loss Account
MCQ
रिक्त स्थान भरें
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उत्तर
Sacrificing ratio is used to distribute goodwill in case of admission of a partner.
Explanation:
The existing partners use this ratio to determine how to share the compensation (premium for goodwill) brought in by the new partner, because they are “sacrificing” a portion of their future profits to make room for the newcomer. Other items like reserves or revaluation profits are distributed using the old profit-sharing ratio.
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