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Why do we consider old ratio …

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Why do we consider old ratio always to adjust goodwill, revaluation, invsetment reserve?. What is the logic behind it.

    • Posted by Anshu Singh 5 years, 6 months ago

    CBSE > Class 12 > Accountancy
    • 1 answers

    Prasanna Sj 5 years, 6 months ago

    If the account finally shows a credit balance then it indicates net gain and if there is a debit balance then it indicates the net loss. Profit or loss will be transferred to the capital accounts of the old partners in old ratio.

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