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If the question clearly says that the new partner takes his share equally from old partners what will be the basis of goodwill distribution?

Answer and explanation

Correct answer: Equal sacrificing ratio

When the share is taken equally the sacrifice is also equal. Therefore goodwill is distributed in equal sacrificing ratio.

Related tags

Ratio SelectionEqual SacrificeExam TipGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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