Correct option is C
If a new partner cannot bring their share of goodwill in cash, the amount is debited to the New Partner’s Current Account. This represents the obligation of the new partner to the firm for their share of goodwill.
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Which account will be debited, in case new partner is unable to bring his/her share of goodwill in cash ?
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CUET 2025 English Language Mock 01
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EnglishSimilar Questions
- 1)Which of the following would affect the Revaluation Account at the time of admission of a partner?
(A) Increase in assets
(B) Drawings against capital
(C) Recording of unrecorded assets
(D) Decrease in liabilities
Choose the correct answer from the options given below: - 2)On the date of admission of a partner there was a balance of ₹45,000 in the account of machinery. It was found undervalued by 10%. The value of machine will appear in the new Balance Sheet at:
- 3)If there is no claim against Workmen Compensation Reserve, it is _________________ at the time of admission of a partner.
Fill in the blank with the correct answer from the options given below. - 4)Anshu and Nitu are partners, sharing profits in the ratio of 3 : 2. They admitted Jyoti as a new partner for 3/10 share which she acquired 2/10 from Anshu and 1/10 from Nitu. Calculate the new profit sharing ratio of Anshu, Nitu and Jyoti.
- 5)The journal entry for treatment of goodwill, when a new partner brings his share of goodwill in cash and one of the old partners gains, involves the following:
(A) Gaining Partner's Capital Account is debited
(B) Premium for Goodwill Account is debited
(C) Sacrificing Partner's Capital Account is credited
(D) Gaining Partner's Capital Account is credited
Choose the correct answer from the options given below: - 6)A, B and C are partners sharing profits in the ratio of 5 : 2 : 3. They admitted D in the firm for 1/5 share on Oct. 1st 2022, with a guarantee of profit ₹35,000 annually. The firm earned a profit of ₹1,60,000 for the year ending March 31st 2023. Calculate deficiency borne by B.
- 7)P, Q, R are partners sharing profits in 2 : 2 : 1, they admitted S for 1/8 share which he acquired entirely from P. Calculate new profit-sharing ratio ?
- 8)Which account will be debited, in case new partner is unable to bring his/her share of goodwill in cash ?
- 9)
Read the following passage and answer question from :
The Balance sheet of Himanshu, Pranav and Tushar who were sharing profits in proportion to their capital stood as follows :
Addition Information :
(A) On 1st April 2022, they admitted Rachit into partnership for 1/6th share in future profit
(B) Rachit will bring ₹25,000 for capital and ₹15,000 for goodwill.
(C) A provision for doubtful debts of 7% was to be made.
(D) Land and building is to be appreciated to 120%.
(E) Machinery is decreased by ₹1,500.
On the basis of above case give answer to question : - 10)Which of the following would affect the Revaluation Account at the time of admission of a partner?
(A) Increase in assets
(B) Drawings against capital
(C) Recording of unrecorded assets
(D) Decrease in liabilities
Choose the correct answer from the options given below:
