When the hybrid method is used to record the withdrawal of a partner, the partnership A. Revalues assets and liabilities and records goodwill to the continuing partner but not to the withdrawing partner. B. Revalues liabilities but not assets, and no goodwill is recorded. C. Can recognize goodwill but does not revalue assets and liabilities. D. Revalues assets but not liabilities, and records goodwill to the continuing partner but not to the withdrawing partner. E. Revalues assets and liabilities but does not record goodwill.
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.
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