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 : Premium for goodwill brought by newly admitted partner should be:

Option 1: Credited to old partners capital account in their sacrificing ratio 

Option 2: Credited to all partners in new profit sharing ratio 

Option 3: Both 1 and 2 

Option 4: None of the above 

Question : If at the time of admission if there is some unrecorded Assets, it will be _________ to _______ Account. 

Option 1: Credited, Revaluation 

Option 2: Debited, Partners' Capital Account 

Option 3: Credited, Partners' Capital 

Option 4: None of the above

Question : Name two items which are credited to the Capital Account of a partner upon his death.

Option 1: Share of profit

Option 2: Share of goodwill

Option 3: Both 1 and 2

Option 4: None of the above

Question : If goodwill is withdrawn which account will be credited

Option 1: Cash account

Option 2: Goodwill account

Option 3: Old partner's capital account

Option 4: None of these