Question : The sum is debited from the___________account when a new partner fails to bring his share of goodwill in cash -
Option 1: Premium A/c
Option 2: Current A/c of the new partner
Option 3: Capital A/cs of the old partners
Option 4: Premium A/c
Answer (1)
21st Jan, 2024
Correct Answer: Current A/c of the new partner
Solution : We must increase the goodwill amount in the books in cases where a partner does not contribute goodwill. As a result, goodwill will be charged against the new partner's current account, and capital accounts of sacrificial partners will be credited with the appropriate sacrificing ratio.
Hence the correct answer is option 2.
Comments (0)
Related Questions
Trending Articles/News
