Question : The journal entry for treatment of goodwill, when a new partner brings his share of goodwill in cash and one of the old partners gains, involves the following :
(A) Gaining Partner's Capital Account is debited
(B) Premium for Goodwill Account is debited
(C) Sacrificing Partner's Capital Account is credited
(D) Gaining Partner's Capital Account is credited
Choose the correct answer from the options given below:
Option 1: (A), (B) and (D) only
Option 2: (A), (B) and (C) only
Option 3: (A), (B), (C) and (D)
Option 4: (B), (C) and (D) only
Correct Answer: (A), (B) and (C) only
Solution : Following is the Journal Entry:
Premium for Goodwill A/c Dr.
Gaining Partner's Capital/Current A/c Dr.
To Sacrificing Partner's Capital/Current A/c
Question : Arrange the following in the correct order:
(A)
Question : When debentures are issued at premium and redeemed at premium, the journal entry will have the following combination:
Question : The adjustment required for overvaluation of closing stock, while calculating adjusted profit for calculate goodwill is
Question : If there is no claim against Workmen Compensation Reserve, it is _____ at the time of admission of a partner.
Question : Arrange the following steps in the correct sequence of the life of a company :
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