At the time of retirement of a partner from a partnership firm, the adjustment of goodwill is done in —

CS CSEET · Business Economics & Fundamentals of Accounting and Auditing · PYQS · December 2013
At the time of retirement of a partner from a partnership firm, the adjustment of goodwill is done in —
(A) Old profit sharing ratio
(B) Gaining ratio
(C) Sacrificing ratio
(D) New profit sharing ratio.

Answer & Explanation:

Correct Answer: Option (B)

Correct answer: (B) Gaining ratio.

Topics: Fundamentals of Accounting and Auditing

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