In case of admission of a new partner, when the incoming partner brings cash equal to his share in…
The incoming partner’s goodwill contribution is credited to existing partners in their sacrificing ratio. It compensates those partners for the shares of future profits they…
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In case of admission of a new partner, when the incoming partner brings cash equal to his share in goodwill, then in which ratio is it credited to existing partners?
Answer and explanation
Correct answer A
The incoming partner’s goodwill contribution is credited to existing partners in their sacrificing ratio. It compensates those partners for the shares of future profits they surrender.
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Rajasthan SET (RSET)