Question : When a new partner brings his share of goodwill in cash, the amount is debited to -
Option 1: Capital A/c of the new partner
Option 2: Cash A/c
Option 3: Goodwill A/c
Option 4: Capital A/cs of the old partners
Correct Answer: Cash A/c
Solution : Cash/Bank According to the maxim "Debit what comes in," the account is debited when the new partner pays their portion of the goodwill in cash. According to the sacrifice ratio of the previous partners, this quantity of goodwill (premium) is transferred to the capital accounts of the sacrificing partners.
Hence the correct answer is option 2
Question : The sum is debited from the___________account when a new partner fails to bring his share of goodwill in cash -
Question : How is goodwill recorded when a partner retires?
Question : What journal entry will be made to write off the goodwill that was already present in the balance sheet at the time of partner retired?
Question : Which of the following accounts are opened when partners have fixed capital?
Question : Which of the following accounts are opened when partners have fluctuating capital?
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