Partnership

Admission

Easy

common

Sacrifice by partners means ________

Old partners agree to gain from incoming partner

Old partners agree to share profit along with them only

New partner agree to sacrifice his share of profit in favour of old partner

Old partners agree to sacrifice their share of profit in favour of the incoming partner

✅ Correct Option: 4

On admission the incoming partner's share must come out of the shares of the existing partners. The reduction in the old partners' profit shares in favour of the new partner is what is called sacrifice, and it is compensated through premium for goodwill.

2025: 14 May Shift 2

Arrange Steps For Capitalisation of Super Profits:

(A) Calculate average profit for the past years, as specified.

(B) Calculate the capital of the firm.

(D) Multiply the super profits with the required rate of return multiplier

(E) Calculate super profits by deducting normal profits from average profits.

Choose the correct answer from the options given below:

2026: 12 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Goodwill	(I) Amount brought by new partner to compensate old partners
(B) Sacrificing ratio	(II) Advantage of reputation, enabling firm to earn super profits
(C) New profit sharing ratio	(III) Ratio in which old partner give up their share
(D) Premium for Goodwill	(IV) Ratio after reconstitution of partnership

Choose the correct answer from the options given below:

2026: 6 June Shift 1

Arrange the following steps in the correct sequence after admission of a new partner:

(A) Revaluation of Assets and Liabilities

(B) Calculation of New Profit Sharing Ratio and Sacrificing Ratio

(D) Distribution of Accumulated Profits and Reserves in the capital accounts

2026: 13 May Shift 1

Which of the following statements are correct?

(A) When a new partner is admitted into partnership firm, sacrificing ratio is used to distribute new partner's share of goodwill.

(B) Hidden goodwill is the excess of Total Capital of the new firm (based on new partner's capital) over the actual combined capital of all the partners.

(C) When a new partner is admitted into partnership firm, the new partner compensates the old partners for their loss of share in the divisible profits of the firm for which he brings in an additional amount that is called as Premium for Goodwill.

(D) Employees' Provident Fund should be distributed among the old partners at the time of admission of a new partner.

Choose the correct answer from the options given below:

2025: 13 May Shift 2

A and B are partners sharing profits equally with capitals of Rs 45,000 each. They admitted C as a new partner for one-third share in the profit. C brings in Rs 60,000 as his capital. Find the value of Firm Goodwill.

2026: 21 May Shift 1

The following steps are followed to ascertain average profit when goodwill is determined on the basis of super profit method. Arrange them in proper sequence.

(A) Ascertain super profit of the firm.

(B) Calculate goodwill of the firm on the basis of super profit.

(D) Find out normal profit of the firm.

Choose the correct answer from the options given below:

Sacrifice by partners means ________

Solution

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