Gobind, Hari and Pratap are partners. On retirement of Gobind, the goodwillalready appears in the Balance Sheet at Rs. 24,000. The goodwill will bewritten-off: (a) by debiting all partners’ capital accounts in their old profit sharing ratio.(b) by debiting remaining partners’ capital accounts in their new profitsharing ratio.(c) by debiting retiring partners’ capital accounts from his share of goodwill.(d) none of these.
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Gobind, Hari and Pratap are partners. On retirement of Gobind, the
already appears in the
written-off:
(a) by debiting all partners’ capital accounts in their old profit sharing ratio.
(b) by debiting remaining partners’ capital accounts in their new profit
sharing ratio.
(c) by debiting retiring partners’ capital accounts from his share of goodwill.
(d) none of these.
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