When the amount of goodwill brought in by incoming partner is withdrawn by existing partners, the entry is going to be

None of the above

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

Goodwill account

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

Old partner`s capital account

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

His capital account

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

Open in App

Solution

The correct option is C
Old partner`s capital account

The journal entry will be:

Old Partner's Capital A/c Dr
To Cash A/c

Suggest Corrections

Similar questions

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 _________.

Goodwill brought in by the incoming partner in cash for joining in a partnership firm is adjusted by giving affect to old partners capital accounts in:

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

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?

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

Join BYJU'S Learning Program

When the amount of goodwill brought in by incoming partner is withdrawn by existing partners, the entry is going to be

The correct option is C Old partner`s capital account The journal entry will be: Old Partner's Capital A/c Dr To Cash A/c

The correct option is C
Old partner`s capital account

The journal entry will be:

Old Partner's Capital A/c Dr
To Cash A/c