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Class 12 Accountancy Partnership Accounts - Basic Concepts Partnership DeedMedium

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When is the sacrifice ratio of old partners mentioned in a partnership deed useful?

Answer and explanation

Correct answer: In goodwill adjustment on admission of a new partner

Old partners sacrifice profit share for the new partner. Goodwill is distributed on the basis of that sacrifice.

Related tags

Sacrifice Ratio Goodwill Admission Partnership Deed Partnership Accounts Basic Concepts Accountancy Class 12 Mcq

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