Z is admitted in a firm for a 1/4 share in the profit for which he brings Rs. 30,000 for goodwill. It will be taken away by the old partners X and Y in:
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Explanation:
Correct option is C)
Premium for goodwill is the additional amount brought in by the incoming partner to compensate for the loss in share of the super profits of the old partners. It is distributed among
the old partners in the ratio in which they forego their shares in favour of the new partner which is called the sacrificing ratio.
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