{"id":44475,"date":"2024-04-15T21:44:15","date_gmt":"2024-04-15T21:44:15","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=44475"},"modified":"2024-04-15T21:44:15","modified_gmt":"2024-04-15T21:44:15","slug":"in-the-case-of-admission-of-a-new-partner-the-amount-of-goodwill-brought-in-by-him-in-the-firm-is-shared-by-the-old-partners","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/in-the-case-of-admission-of-a-new-partner-the-amount-of-goodwill-brought-in-by-him-in-the-firm-is-shared-by-the-old-partners\/","title":{"rendered":"In the case of admission of a new partner, the amount of goodwill brought in by him in the firm is shared by the old partners :"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a9731fa185f2\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    In their old profit-sharing ratio                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    In the ratio of their capital                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"true\">\r\n                    In their sacrificing ratio                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    In their new profit-sharing ratio                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: C. In their sacrificing ratio.<\/p>\n<p>When a new partner is admitted into a firm, the old partners have to sacrifice their share of the profits to make room for the new partner. The amount of goodwill that the new partner brings in is used to compensate the old partners for their sacrifice. The old partners share the goodwill in the ratio of their sacrificing ratio.<\/p>\n<p>The sacrificing ratio is the ratio in which the old partners&#8217; capitals are reduced when a new partner is admitted into the firm. It is calculated by deducting the amount of goodwill brought in by the new partner from the old partners&#8217; capitals.<\/p>\n<p>For example, if a firm has three partners, A, B, and C, and the new partner brings in goodwill of $10,000, the sacrificing ratio would be:<\/p>\n<p>A:B:C <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n       <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div>      <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> = (A&#8217;s capital &#8211; $10,000):(B&#8217;s capital &#8211; $10,000):(C&#8217;s capital &#8211; $10,000)<\/p>\n<p>If A&#8217;s capital is $20,000, B&#8217;s capital is $30,000, and C&#8217;s capital is $40,000, the sacrificing ratio would be:<\/p>\n<p>A:B:C = (20,000 &#8211; 10,000):(30,000 &#8211; 10,000):(40,000 &#8211; 10,000)<\/p>\n<p>= 10,000:20,000:30,000<\/p>\n<p>= 1:2:3<\/p>\n<p>The old partners would share the goodwill in the ratio of 1:2:3.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>In the case of admission of a new partner, the amount of goodwill brought in by him in the firm is shared by the old partners :<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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