Question : Premium for goodwill brought by newly admitted partner should be:
Option 1: Credited to old partners capital account in their sacrificing ratio
Option 2: Credited to all partners in new profit sharing ratio
Option 3: Both 1 and 2
Option 4: None of the above
Correct Answer: Credited to old partners capital account in their sacrificing ratio
Solution : Answer = Credited to old partners' capital account in their sacrificing ratio
When a new partner is admitted, any premium paid for goodwill is typically credited to the old partners' capital accounts in their sacrificing ratio. This reflects the adjustment of the existing partners' capital to account for the goodwill they are giving up as a result of the new partner's admission. Hence, the correct option is 1.
Question : Sacrificing ratio is calculated because:
Question : At the time of admission of a partner, the balance of the Investments Fluctuation Reserve, after meeting the loss on revaluation of investments is transferred to _____________of __________in their_____________.
Question : A, B and C are partners sharing profits in a ratio of 5:3:2. D is admitted and new profit sharing ratio is agreed at 1:2:2:1. Goodwill is valued at Rs 1,20,000. What entry will be passed if a goodwill account is to be raised and written off?
Question : If the new partner brings the goodwill amount in cash and the goodwill account still has a balance, the goodwill account is wiped down among the previous partners in -
Question :
Accumulated losses on the retirement of a partner are
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