Question

The ________ ratio is useful for making adjustment for goodwill among the old partners. (Fill in the blank by choosing correct option)
a) new
b) sacrifice
c) old
d) Profit and Loss Adjustment

Answer 1

Hey mate ✌️✌️

The ________ ratio is useful for making adjustment for goodwill among the old partners. (Fill in the blank by choosing correct option)
a) new
b) sacrifice
c) old ☑️☑️
d) Profit and Loss Adjustment

Answer 2

• The sacrifice ratio is useful for making an adjustment for goodwill among the old partners.

• Goodwill adjustment record wants to be made through partners' capital accounts without raising goodwill.

• Under the premium method, the new partner brings his share of goodwill in cash.

• The old partners bring their share in the sacrificing ratio.