Question:
Goodwill brought in cash by the incoming partner is credited to:
Goodwill brought in cash by the incoming partner is credited to:
Show Hint
Incoming partner compensates sacrificing partners through premium for goodwill.
Updated On: May 31, 2026
- Revaluation Account
- Cash Account
- Old Partners’ Capital Accounts
- Incoming Partner’s Capital Account
Show Solution
Verified By Collegedunia
The Correct Option is C
Solution and Explanation
Concept:
Sacrificing partners are compensated for sacrifice of future profits through goodwill brought by the incoming partner.
Step 1: Understand treatment of goodwill.
Goodwill brought in cash is distributed among sacrificing partners in sacrificing ratio. Hence, goodwill is credited to: \[ \boxed{\text{Old Partners’ Capital Accounts}} \]
Step 1: Understand treatment of goodwill.
Goodwill brought in cash is distributed among sacrificing partners in sacrificing ratio. Hence, goodwill is credited to: \[ \boxed{\text{Old Partners’ Capital Accounts}} \]
Was this answer helpful?
0
0
Top CUET Accountancy Questions
- As per Receipts and Payments Account for the year ended on March 31, 2020, subscriptions received were ₹ 2,50,000 subscriptions outstanding on 1-04-2019 ₹ 50,000, Subscriptions received in advance as on 31-3-2020 are ₹ 30.000. Subscriptions for the year 2019-20 will be:
- At the time of admission of a new partner general reserve appearing in the old balance sheet is transferred to_______
- Match List-I with List-IIChoose the correct answer from the options given below:
LIST I: Basis of Debenture LIST II: Types of Debenture (A) Tenure (I) Zero coupon rate (B) Interest rate point of view (II) Irreedemable (C) Security (III) Registration (D) Bearer (IV) Secured - On retirement of a partner, the retiring partner's capital account will be credited with ______
- Journal entry to be passed for unrecorded assets for preparing Revaluation A/C at the time of Retirement of a partner will be______
View More Questions
Top CUET New Partner Questions
- Based on the following, answer the question. Amrita and Kalyani are partners sharing profits in the ratio of 3 : 2. They decided to expand the business by admitting Suraj as a new partner for 1/4th share. Suraj’s share of goodwill is valued at Rs 90,000 for which he compensated Amrita and Kalyani in the ratio 1 : 4. Following information is also provided:
- Machinery : Rs 25,00,000
- Land : Rs 10,00,000
- Computer : Rs 2,50,000
- Workmen compensation fund : Rs 5,30,000
A new partner can be admitted: - X and Y are partners sharing profits in the ratio of \(2:1\). They admit Z into partnership for \( \frac{1}{4} \) share in profits for which he brings Rs.20,000 as his share of capital. Hence, the adjusted capitals of X and Y will be:
- Which of the following is not an essential feature of partnership?
- Which of the following is not an essential feature of partnership?
- A and B are partners sharing profits in the ratio of \( 3:2 \). C is admitted as a new partner for a \( \frac{1}{5} \)th share in the profits, which he acquires entirely from A. What will be the new profit-sharing ratio of A, B, and C?
View More Questions
Top CUET Questions
Select the statements that are CORRECT regarding patterns of biodiversity.
(A) Species diversity increases as we move away from the equator towards the poles(B) The tropical Amazon rain forest in South America has the greatest biodiversity on earth.(C) There is more solar energy available in the temperate region than tropics.(D) Tropical environments are less seasonal relatively more constant and predictableWhich of the following hormone is not produced by placenta ?
- Individuals with karyotype of 44+XXY having overall masculine development with few feminine development like Gynaecomastia has _______ chromosomal disorder.
- Match List - I with List - II.Choose the correct answer from the options given below :
List - I
List - II
A Streptokinase I Blood-Cholestrol lowering agents B Cyclosporin II Clot Buster C Statins III Propionibacterium sharmanii D Swiss Cheese IV Immuno suppressive agent Which of the following option determines percolation and water holding capacity of soils ?
View More Questions