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
Answer (1)
16th Jan, 2024
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.
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