Question : At the time of change in profit sharing ratio Sacrificing partner is ------ and gaining partner is ----- for the adjustment of goodwill.
Option 1: Credited, debited
Option 2: Debited, credited
Option 3: Debited, debited
Option 4: Credited, credited
Answer (1)
27th Jan, 2024
Correct Answer: Credited, debited
Solution : Answer = Credited, debited
When there's a change in profit-sharing ratio, the sacrificing partner's capital decreases, so they are credited. The gaining partner's capital increases, so they are debited. This adjustment reflects the redistribution of goodwill.
Hence, the correct option is 1.
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