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A new partner brings goodwill in cash. In which ratio will it be distributed among old partners?

Answer and explanation

Correct answer: Sacrificing ratio

On admission goodwill is distributed in the ratio in which old partners sacrifice. This is the sacrificing ratio.

Related tags

GoodwillSacrificing RatioCash GoodwillPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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