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When is the ratio of sacrifice calculated for the distribution of goodwill? - Book Keeping and Accountancy

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Question

When is the ratio of sacrifice calculated for the distribution of goodwill?

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Solution

The ratio of sacrifice is calculated when the benefits of goodwill contributed by a new partner in cash is to be transferred to existing partners' Capital/Current Account.

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Chapter 3: Reconstitution of Partnership (Admission of Partner) - Exercise 3.1 (Objective Type Questions) [Page 160]

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Balbharati Book-Keeping and Accountancy [English] Standard 12 Maharashtra State Board
Chapter 3 Reconstitution of Partnership (Admission of Partner)
Exercise 3.1 (Objective Type Questions) | Q 1. (F) 7. | Page 160
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