At the time of retirement, the partner's capital account is debited on the transfer of goodwill amount to their capital account.

old

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

gaining

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

retiringa

No worries! We‘ve got your back. Try BYJU‘S free classes today!

sacrificing

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct options are
A old
B gaining
Gaining partners capital accounts are debited and losing partner's capital account is credited to give effect to treatment of goodwill.

Suggest Corrections

Similar questions

Q. At the time of retirement, the partner's capital account is credited on the transfer of goodwill amount to their capital account.

Q. If the goodwill raised at the time of retirement of a partner is to be written off, then the capital accounts of the remaining partners are debited in :

Q. On retirement of a partner, goodwill appears in the balance sheet , it will be written-off by debiting the capital accounts of partners.

If the value of goodwill is Rs. 3,00,000. The PSR of A, B and C is 1:1:1. A retires and new profit sharing ratio is 1:1. B and C Capital accounts will be debited with what amount?

While adjusting for goodwill, ___________ partners' capital account is debited and ___________ partners' capital account is credited.

Join BYJU'S Learning Program

At the time of retirement, the partner's capital account is debited on the transfer of goodwill amount to their capital account.

The correct options are A old B gainingGaining partners capital accounts are debited and losing partner's capital account is credited to give effect to treatment of goodwill.

The correct options are
A old
B gaining
Gaining partners capital accounts are debited and losing partner's capital account is credited to give effect to treatment of goodwill.