If the Goodwill raised at the time of retirement of a partner is to be written off, then the capital…
The continuing partners' capital accounts are debited in the new profit-sharing ratio when newly raised goodwill is written off after retirement. They bear the write-off…
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If the Goodwill raised at the time of retirement of a partner is to be written off, then the capital accounts of the remaining partners are debited in ____.
Answer and explanation
Correct answer A
The continuing partners' capital accounts are debited in the new profit-sharing ratio when newly raised goodwill is written off after retirement. They bear the write-off according to the proportions in which they will share future profits.
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Karnataka SET (KSET)