Chapter 3 - Reconstitution of Partnership (Admission of Partner) [Latest edition] Write a word/phrase/term which can substitute the following statement.

Balbharati solutions for Book-keeping and Accountancy 12th Standard Hsc Maharashtra State Board 

Chapter 3 - Reconstitution of Partnership (Admission of Partner) [Latest edition]

Write a word/phrase/term which can substitute the following statement.


Method under which calculation of goodwill is done on the basis of extra profit earned above the normal profit - Super Profit Method


An account opened to adjust the value of assets and liabilities at the time of admission of a partner - Revaluation A/c or Profit and Loss A/c


Reputation of business measured in terms of money - Goodwill


The ratio in which general reserve is distributed to the old partners. - Old Ratio 


Name the method of the treatment of goodwill where new partner will bring his share of goodwill in cash. - Premium Method


The proportion in which old partners make a sacrifice. - Sacrifice Ratio


Capital employed × NRR/100 = Normal Profit


An account that is debited when the partner takes over the asset. - Partner’s Capital A/c or Partner’s Current A/c


Profit and Loss Account balance appearing on the liability side of the Balance Sheet. - Undistributed Profit or Accumulated Profit


Old ratio - New ratio = Sacrifice Ratio

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