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Match the following items: (i) When new partner is unable to bring his/her share of goodwill in cash (ii) When new partner brings his/her share of goodwill in cash

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Question

Match the following items:

(i) When new partner is unable to bring his/her share of goodwill in cash (a) No entry passed in the books of accounts
(ii) When new partner brings his/her share of goodwill in cash (b) New Partners Current A/c   ...Dr.
     To Sacrificing Partners Capital A/с
    (c) Bank A/с   ...Dr.
     To Premium for goodwill A/c
Match the Columns
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Solution

(i) When new partner is unable to bring his/her share of goodwill in cash (b) New Partners Current A/c   ...Dr.
     To Sacrificing Partners Capital A/с
(ii) When new partner brings his/her share of goodwill in cash (c) Bank A/с   ...Dr.
     To Premium for goodwill A/c
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Chapter 3: Admission of a Partner - OBJECTIVE TYPE QUESTIONS [Page 3.187]

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D. K. Goel Accountancy Part A Volume 1 and 2 [English] Class 12
Chapter 3 Admission of a Partner
OBJECTIVE TYPE QUESTIONS | Q (D) 5. | Page 3.187
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