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
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.
Question : How is goodwill recorded when a partner retires?
Option 1: Remaining Partner’s Capital A/cs Dr. (In Gaining Ratio)
To Retiring Partner’s Capital A/c (with his share of goodwill)
Option 2: Remaining Partner’s Capital A/cs Dr. (In New Ratio)
Option 3: Goodwill A/c Dr.
To Retiring Partner’s Capital A/c (with his share)
Option 4: Goodwill A/c Dr.
To All Partner’s Capital A/cs (In Old Ratio)
Question :
Which of the following statement is correct?
Option 1:
Goodwill at the time of retirement of a partner is credited to remaining Partners’ Capital Accounts in sacrificing ratio.
Option 2:
Goodwill at the time of retirement of a partner is credited to remaining Partners’ Capital Accounts in gaining ratio.
Option 3: Goodwill at the time of retirement of a partner is debited to remaining Partners' Capital Accounts in sacrificing ratio.
Option 4:
Goodwill at the time of retirement of a partner to the extent of retiring Partner's Share is debited to remaining Partners’ Capital Accounts in gaining ratio.
Question : Reserves, Accumulated (Undistributed) Profits And Losses will be
Option 1: Distributed in remaining partner’s capital account
Option 2: Distributed among all partner’s capital account in old ratio
Option 3: Distributed among all partner’s capital account in New profit sharing ratio
Option 4: Distributed among old partners capital account in gaining ratio
Question : Upon partner retirement,Goodwill will be credited to the capital account of -
Option 1: Remaining partners
Option 2: Retiring Partner
Option 3: All partners
Option 4: None of the above
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