Question

Select the most appropriate alternative from those given below and rewrite the statement.
If goodwill is raised to the extent of retiring partner’s share, ________ account is to be debited.

Options

• Cash

• Goodwill

• all partner's capital

• retiring partner's capital

Answer 1

Goodwill

Explaination : If goodwill is raised to the extent of retiring partner’s share,  goodwill account is to be debited.