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 : A, B and C are equal partners. They decided to change the profit sharing ratio 4:3:2. For this purpose, the goodwill of the firm is valued at Rs 90,000.  The journal entry for the treatment of goodwill on change in profit sharing ratio will be

Option 1:  C’s capital A/c   Dr         10,000
        To A’s capital A/c  10,000

Option 2: B’s capital A/c  Dr     10,000
  To A’s capital A/c 10,000

Option 3: A’s capital A/c Dr       90,000

     To C's capital A/c  90,000

Option 4: A;s capital A/c Dr  10,000

      To C’s capital A/c   10,000

Question : What journal entry will be made of accumulated profits and losses on the death of partner? 

Option 1: Deceased Partner’s Capital A/c      Dr.

      To Profit and Loss A/c 

Option 2: Profit and Loss A/c             Dr.

To Deceased Partner’s Capital A/c 

Option 3: Deceased Partner’s Capital A/c      Dr.

  To Profit and Loss Suspense A/c 

Option 4: Profit and Loss Suspense A/c     Dr.

To Deceased Partner’s Capital A/c 

Question : A, B and C are in partnership sharing profits and losses in the ratio of 5: 4: 1. Two new partners D and E are admitted. Profits are to be shared in the ratio of 3: 4: 2: 2:1 respectively. D is to pay Rs. 30,000 for his share of goodwill but E is unable to pay for goodwill. Both the new partners introduced Rs. 40,000 each as their capital.
Choose the correct option.
 

Option 1: Debiting Bank account 1,10,000 and  crediting D’s capital account Rs 40,000 and E’s capital account Rs 40,000  and premium for goodwill account with Rs 30,000
 

Option 2: Debiting premium for goodwill account with Rs 30,000  and  crediting A’s capital account with Rs 15,000 and B’s capital account with Rs 5000 and C’s capital account Rs 10,000
 

Option 3: Debiting premium for goodwill account Rs 30,000  and debiting  c’s capital account 12,000 and E’s current account 15000 and crediting  A’s capital account 45,000 and B’s capital account Rs 12,000

Option 4: Both 1 and 3 

Question : A and B are partners sharing profits and losses in the ratio of 4:1. They admit C into partnership for $\frac{1}{6}$th share for which he pays Rs.20,000 for goodwill. A, B and C decide to share future profits in the ratio of 3: 2: 1 respectively.

Choose the correct journal entry.

Option 1: Premium for goodwill a/c ........Dr 20,000
To A's capital A/c 15,000
To B"s capital A/c 5,000

Option 2: Premium for goodwill a/c....... Dr 20,000
To A's capital A/c 20,000

Option 3: Premium for goodwill a/c .......Dr 20,000
To B"s capital A/c 20,000

Option 4: Premium for Goodwill A/c.......Dr 20,000
B's Capital A/c.......Dr 16,000
To A's Capital A/c 36,000