Gobind, Hari, and Pratap are partners. On the retirement of Gobind, the goodwill already appears in the books at ₹24,000. The goodwill will be written off
By debiting all the partner capital accounts in old profit-sharing ratio
When goodwill already exists in the books and a partner retires, it is written off by debiting all partners’ capital accounts in the old profit-sharing ratio.
Thus, the correct answer is: By debiting all the partner capital accounts in old profit-sharing ratio.
Important Questions from Reconstitution of a Partnership : Retirement/Death of a Partner
In the absence of any information regarding the acquisition of share in profit of the retiring partner by the remaining partners, it is assumed that they will acquire his/her share in:
Profit and Loss Suspense Account is debited at the time of death of partner.
Identify the section of the Indian Partnership Act, 1932, that states that the outgoing partner has an option to receive either interest @ 6% p.a. till the date of payment or such share of profits that has been earned with his/her money.
What is the correct sequence at the time of death of a partner?
(A) Amount paid to Executor
(B) Preparation of Revaluation account
(C) Calculation of Amount Payable to Executor of Deceased Partner
(D) Calculation of Revaluation Gain/Loss
(E) Balance of Executor’s loan A/c
Choose the correct answer:
In case of retirement, a retiring partner is entitled to get:
A. Share in profits made by the firm after his retirement
B. His share of Goodwill
C. His share in Accumulated Reserve
D. Share in Employees Provident Fund
Choose the correct answer from the options given below:
