Question:

On retirement of a partner, the retiring partner's capital account will be credited with ______

Updated On: Mar 12, 2025

His/her share of Goodwill
Good will of the firm
Share of Good will of Remaining Partners
His/her share of Goodwill and share of Goodwill of Remaining Partners

Hide Solution

Verified By Collegedunia

The Correct Option is A

Solution and Explanation

The correct option is (A): His/her share of Goodwill

Was this answer helpful?

Top Questions on Partnership

Bhawana and Vedika were partners in a firm sharing profits and losses in the ratio of 5:4. From 1st April, 2024 they decided to share future profits and losses in the ratio of 4:5. On this date, their balance sheet showed a debit balance of Rs 1,80,000 in Profit and Loss Account and a balance of Rs 6,30,000 in General Reserve. Partners decided to write off debit balance in Profit and Loss Account but decided not to distribute the General Reserve.
Pass necessary journal entries for the above transactions on the reconstitution of the firm. Show your workings clearly.
- CBSE CLASS XII - 2025
- Accountancy
- Partnership
View Solution
Aakash and Baadal entered into partnership on 1st October 2023 with capitals of Rs 80,00,000 and Rs 60,00,000 respectively. They decided to share profits and losses equally. Partners were entitled to interest on capital @ 10 per annum as per the provisions of the partnership deed. Baadal is given a guarantee that his share of profit, after charging interest on capital, will not be less than Rs 7,00,000 per annum. Any deficiency arising on that account shall be met by Aakash. The profit of the firm for the year ended 31st March 2024 amounted to Rs 13,00,000.
Prepare Profit and Loss Appropriation Account for the year ended 31st March 2024. \vspace{0.3cm}
- CBSE CLASS XII - 2025
- Accountancy
- Partnership
View Solution
Nandita and Prabha were partners in a firm. Nandita withdrew Rs 3,00,000 during the year for personal use. The partnership deed provides for charging interest on drawings @ 10 p.a. Interest on Nandita's drawings for the year ended 31st March, 2024 will be:
- CBSE CLASS XII - 2025
- Accountancy
- Partnership
View Solution
Assertion (A): The maximum number of partners in a partnership firm is 50.
Reason (R): By virtue of the Companies Act 2013, the Central Government is empowered to prescribe maximum number of partners in a firm. The Central Government has prescribed the maximum number of partners in a firm to be 50.
Choose the correct option from the following:
- CBSE CLASS XII - 2025
- Accountancy
- Partnership
View Solution
Kajal and Laura were partners in a firm sharing profits and losses in the ratio of 5:3. They admitted Maddy for \( \frac{1}{4} \)th share in future profits. Maddy brought Rs 8,00,000 as his capital and Rs 4,00,000 as his share of premium for goodwill. Kajal, Laura and Maddy decided to share profits in future in the ratio of 2:1:1. After all adjustments in respect of goodwill, revaluation of assets and liabilities etc. Kajal's capital was Rs 15,00,000 and Laura's capital was Rs 8,00,000. It was agreed that partners' capitals should be in proportion to their new profit sharing ratio taking Maddy's capital as base. The adjustment was made by bringing in or withdrawing the necessary cash as the case may be. The cash brought in by Kajal was:
- CBSE CLASS XII - 2025
- Accountancy
- Partnership
View Solution

View More Questions

Questions Asked in CUET exam

Match List-I with List-II

List-I (Name of account to be debited or credited, when shares are forfeited)	List-II (Amount to be debited or credited)
(A) Share Capital Account	(I) Debited with amount not received
(B) Share Forfeited Account	(II) Credited with amount not received
(C) Calls-in-arrears Account	(III) Credited with amount received towards share capital
(D) Securities Premium Account	(IV) Debited with amount called up

Choose the correct answer from the options given below:

CUET (UG) - 2024
Accounting for Share and Debenture Capital

View Solution

View More Questions