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

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 : 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)

To Retiring Partner’s Capital A/c (with his share of goodwill)

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 : Arrange the following steps in proper sequence
When the Retiring Partner is to be paid through amount brought by the Remaining or Continuing partners in a manner to make their Capitals Proportionate to their New Profit-sharing Ratio and also leave a desired Cash Balance
1. Calculate Adjusted Capital of the remaining partners, i.e., after making adjustments for goodwill, reserves, accumulated profits/losses and gain or loss on revaluation
2. Calculate New Capital of each remaining partner as follows:
Total Capital of the New Firm) $\times$ New Profit Share.
3. Calculate Surplus Capital or Deficit Capital by comparing the New Capital and Adjusted Capital
4. Calculate Total Capital of the new firm as follows:
Aggregate of Adjusted Capital of Remaining Partners + Shortage of amount to be brought in by Remaining partners to pay the retiring partner (i.e., Amount payable to retiring partner - Existing Cash Balance) + Minimum Cash Balance Required

Option 1: I,II,III,IV

Option 2: I,II,IV,III

Option 3: I,III,II,IV

Option 4: None of the above

Question : When the Retiring Partner is to be paid through amount brought by the remaining partners in a manner to make their capitals proportionate to their New Profit-sharing Ratio. Arrange the following steps in proper sequence
I. Calculate Adjusted Capital of remaining partners after adjustments.
II. Calculate Total Capital of the new firm as follows:

Aggregate of adjusted capital of remaining partners + Shortage of amount to be brought in by continuing partners to pay the retiring partner
III. Find Surplus Capital/Deficit Capital of each continuing partner by comparing New Capital with the Adjusted Old Capital
IV. Calculate New Capital of remaining partners by dividing Total Capital of the new firm in their New Profit-sharing Ratio.

Option 1: I,II,III,IV

Option 2: I,III,IV,II

Option 3: I,II,IV,III

Option 4: IV,III,II,I