Question : When a partner retires his share of goodwill is

Option 1: Cr. to his account 

Option 2: Dr. to his account

Option 3: Either 1 and 2

Option 4:   No  of the above

Question : When a partner retires from  the firm having three partners, firm will necessary be …….

Option 1: Dissolved

Option 2: Revalued

Option 3: Reconstituted

Option 4: None of the above

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

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 : Which statements is not true with respect to AS-26? 

Option 1: Purchased goodwill can be shown in the Balance Sheet assets side. 

Option 2: Revalued goodwill can be shown in the Balance Sheet 

Option 3: Both purchased goodwill and revalued can be shown in the Balance Sheet 

Option 4: None of the above