Question : For the adjustment of goodwill at the time of retirement , retiring partner’s capital and current account will be ------- by his share and remaining partners ‘s capila or current account will be ------ in Gaining ratio.
Option 1: Debit, credit
Option 2: Credit, debit
Option 3: Debit, debit
Option 4: Credit, credit
Correct Answer: Credit, debit
Solution : Answer = Credit and debit
At the time of retirement of partner’s retiring partner's capital account will be credited and the remaining partner's capital account will be debited because In this case remaining partner Gains his share of goodwill and the retiring partner sacrificing. Hence, the correct option is 2.
Question : How is goodwill recorded when a partner retires?
Question :
Which of the following statement is correct?
Question : Reserves, Accumulated (Undistributed) Profits And Losses will be
Question : Upon partner retirement,Goodwill will be credited to the capital account of -
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