The sacrificing partner’s capital account is debited with his/her share of goodwill and gaining partner’s capital account is credited in their gaining ratio.

True

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False

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None of these

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Solution

The correct option is B
False

False. The sacrificing partner’s capital account is credited with his/her share of goodwill and gaining partner’s capital account is debited in their gaining ratio.

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Similar questions

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.

Gaining partners capital accounts are debited in the ____________ ratio to give effect to treatment of goodwill.

Q. When required amount for premium for goodwill is not brought in by new partner, goodwill account is raised in the books of the firm by debiting goodwill account and crediting partners capital account in old profit sharing ratio and written off in ______ if it agreed not show goodwill in the books of the firm OR ALTERNATIVELY premium for goodwill should be adjusted through partners capital account by debiting new partners share of goodwill to his account and crediting old partners capital accounts in _________.

In the case of hidden goodwill, the new partner`s capital account is ___ with his share of goodwill.

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The sacrificing partner’s capital account is debited with his/her share of goodwill and gaining partner’s capital account is credited in their gaining ratio.

The correct option is B False False. The sacrificing partner’s capital account is credited with his/her share of goodwill and gaining partner’s capital account is debited in their gaining ratio.

The correct option is B
False

False. The sacrificing partner’s capital account is credited with his/her share of goodwill and gaining partner’s capital account is debited in their gaining ratio.