Maharashtra State BoardHSC Arts 12th Board Exam
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State Whether the Following Statements is True Or False : - Book Keeping and Accountancy

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MCQ

State whether the following statements is true or false :

If goodwill is written off retiring partner’s capital account is debited.

Options

  • True

  • False

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Solution

True

Explanation:
 The old goodwill already existing in the books of a firm (as reflected in the Old Balance Sheet prior to retirement) is written off by debiting All Partners’ Capital Accounts (including retiring partner) in their old profit sharing ratio and by crediting the Goodwill A/c.

Concept: Retirement Or Death of a Partner - Treatment of Goodwill
  Is there an error in this question or solution?
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APPEARS IN

Micheal Vaz Accounts - Book Keeping and Accountancy HSC 12th Standard Maharashtra State Board
Chapter 5 Reconstitution of Partnership (Death of Partner)
Exercise | Q 5 | Page 141
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