State the ratio in which the old partners share the amount of cash brought in by the new partner as premium for goodwill. – Swamonk EduCare

State the ratio in which the old partners share the amount of cash brought in by the new partner as premium for goodwill.

Post category:Accountancy
Reading time:1 mins read

SOLUTION

The old partners share the amount of premium for goodwill in the sacrificing ratio. The formula is: Sacrificing Ratio = Old Ratio – New Ratio.

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