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Question Practice

What is the significance of the sacrificing ratio in goodwill calculations?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 12
Accountancy
Accountancy Part - I
Reconstitution of a Partnershi...
Question Bank

What is the significance of th...

Single Answer MCQ
Q-00082123

What is the significance of the sacrificing ratio in goodwill calculations?

1

It indicates the amount of goodwill transferred to the new partner.

2

It determines the profit-sharing ratio of existing partners.

3

It helps to calculate the average profits.

4

It shows the amount invested by new partners.

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