Question

what is the ratio of sacrifice calculated for distribution of goodwill​

Answer 1

Answer:

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.

Explanation:

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Answer 2

Answer:

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♤What is the ratio of sacrifice calculated for distribution of goodwill?

☆⭐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.

Explanation:

♤When is the goodwill amount distributed among the old partners in the sacrificing ratio?

CASE 1 :

• ☆⭐If the Profit Sharing Ratio(PSR) of partners is changing, therefore the gaining partner/partners will have to give their part in goodwill gained to sacrificing partner/partners in their sacrificing ratio/ratios.

CASE 2 :

• ☆⭐If new partner is addmited in the firm then the new partner will give his part of goodwill share on admission gained to old partners in their sacrificing ratio/ratios.