In which case, New Partners' Current A/c is debited at the time of admission of a partner? |
When new partner is unable to bring his share of goodwill in cash When new partner brought his share of goodwill in cash When new partner paid goodwill premium privately to old partners When new partner paid goodwill premium privately to sacrificing partners |
When new partner is unable to bring his share of goodwill in cash |
The correct answer is option 1- When new partner is unable to bring his share of goodwill in cash. New Partners' Current A/c is debited, when new partner is unable to bring his share of goodwill in cash at the time of admission of a partner.
Sometimes the new partner brings part of premium for goodwill in cash. In such a situation, new partners current account will be debited by the amount not brought by new partner. |