On the admission of a partner, goodwill is raised for $R s . 45, 000$ . This amount is debited to __________.

capital accounts of partners

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goodwill account

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cash account

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none of these

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Solution

The correct option is B goodwill account
At the time of admission of a new partner, existing goodwill in the books of firm is raised among old partner in their old profit sharing ratio.
Journal entry of goodwill raised is -
Goodwill A/c Dr.
To old partners' capital A/c (individually)

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Similar questions

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On the admission of a partner, goodwill is raised for Rs.45,000. This amount is debited to __________.

The correct option is B goodwill accountAt the time of admission of a new partner, existing goodwill in the books of firm is raised among old partner in their old profit sharing ratio.Journal entry of goodwill raised is - Goodwill A/c Dr. To old partners' capital A/c (individually)

On the admission of a partner, goodwill is raised for $R s . 45, 000$ . This amount is debited to __________.

The correct option is B goodwill account
At the time of admission of a new partner, existing goodwill in the books of firm is raised among old partner in their old profit sharing ratio.
Journal entry of goodwill raised is -
Goodwill A/c Dr.
To old partners' capital A/c (individually)