Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:
When a new partner brings his share of goodwill in cash, the amount is debited to which account?
Options:
Goodwill A/c
Capital A/c of New Partner
Cash a/c
Capital A/c of Old Partners
Correct Answer:
Cash a/c
Explanation:
Bank A/c Dr
To Goodwill A/c