Accountancy Part AAdmission of a Partner

Match the following when capitals are fixed at time of admission of p…

Match the following when capitals are fixed at time of admission of partner.

LIST 1	LIST 2
(A) Capital brought in by new partner	(I) Credit side of Current A/c
(B) Goodwill share brought by new partner is transferred to sacrificers	(II) Debit side of Current A/c
(C) Goodwill existing in Books	(III) Credit side of Capital A/c
(D) Capital withdrawn by Partners	(IV) Debit side of Capital A/c

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → (A)-(III), (B)-(I), (C)-(II), (D)-(IV)

Under the fixed capital method the capital account records only capital brought in or withdrawn; every other adjustment goes through the current account.

(A) Capital brought in by new partner — this matches (III) Credit side of Capital A/c.
(B) Goodwill share brought by new partner is transferred to sacrificers — this matches (I) Credit side of Current A/c. The sacrificing partners gain, so their current accounts are credited.
(C) Goodwill existing in Books — this matches (II) Debit side of Current A/c. It is written off among the old partners through their current accounts.
(D) Capital withdrawn by Partners — this matches (IV) Debit side of Capital A/c.

NCERT (2026-27 edition):
Fixed Capital Method – “Under the fixed capital method, the capitals of the partners shall remain fixed unless additional capital is introduced or a part of the capital is withdrawn as per the agreement among the partners. All items like share of profit or loss, interest on capital, drawings, interest on drawings, etc. are recorded in a separate accounts, called Partner’s Current Account.”