When Goodwill Is Written-Off, Goodwill A/C Is Debited To All Partner Capital Account In New Profit Sharing Ratio.

True

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False

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Solution

The correct option is A True

True.

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Q. A, B and C shared profits and losses in the ratio of 3 : 2 : 1 respectively. With effect from 1st April, 2019, they agreed to share profits equally. The goodwill of the firm was valued at ₹ 18,000. Pass necessary Journal entries when: (a) Goodwill is adjusted through Partners' Capital Accounts; and (b) Goodwill is raised and written off.

Q. State whether the following statements are true or false :

If goodwill is written off retiring partner’s capital account is debited.

Goodwill is written off by debiting all the partners’ capital account in the ___

Q. Goodwill already appearing in the books is written off by debiting all the partners’ capital account in the .

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?

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When Goodwill Is Written-Off, Goodwill A/C Is Debited To All Partner Capital Account In New Profit Sharing Ratio.

The correct option is A True True. Explore more such questions and answers at BYJU’S.

The correct option is A True

True.

Explore more such questions and answers at BYJU’S.