Match the following when capitals are fi

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Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:

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(D) Capital withdrawn by Partners	(IV) Debit side of Capital A/c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:

Options:

(A)-(II), (B)-(IV), (C)-(III), (D)-(I)

(A)-(III), (B)-(I), (C)-(IV), (D)-(II)

(A)-(III), (B)-(I), (C)-(II), (D)-(IV)

(A)-(I), (B)-(III), (C)-(IV), (D)-(II)

Correct Answer:

(A)-(III), (B)-(I), (C)-(II), (D)-(IV)

Explanation:

The following journal entries will be passed when capitals are fixed at time of admission of partner-

(A) Capital brought in by new partner -
Cash A/c Dr.
To Partner's Capital A/c

(B) Goodwill share brought by new partner is transferred to sacrificers-
Premium for goodwill A/c Dr.
To Partner's Current A/c

(C) Goodwill existing in Books-
Partner's Current A/c Dr.
To Goodwill A/c

(D) Capital withdrawn by Partners-
Partner's Capital A/c Dr.
To Cash A/c