Match List-I with List-II
List-I List-II (A) Incoming partner brings goodwill in cash (I) No entry to be passed (B) Goodwill already exist in the books (II) Sacrificing partners are credited with their share and new partner is debited (C) Incoming partner does not bring goodwill in cash (III) Amount of Premium is shared by the existing partners in the sacrificing ratio (D) Goodwill paid privately to sacrificing partners (IV) Write-off the goodwill in old ratio
Choose the correct answer from the options given below:
Match List-I with List-II
| List-I | List-II |
|---|---|
| (A) Incoming partner brings goodwill in cash | (I) No entry to be passed |
| (B) Goodwill already exist in the books | (II) Sacrificing partners are credited with their share and new partner is debited |
| (C) Incoming partner does not bring goodwill in cash | (III) Amount of Premium is shared by the existing partners in the sacrificing ratio |
| (D) Goodwill paid privately to sacrificing partners | (IV) Write-off the goodwill in old ratio |
Choose the correct answer from the options given below:
Solution
✅ Correct Option: 4
Premium brought in cash is shared by old partners in the sacrificing ratio, so (A)-(III). Goodwill already in the books is written off among old partners in the old ratio, so (B)-(IV). When premium is not brought, the new partner's capital/current account is debited and sacrificing partners are credited, so (C)-(II). Goodwill paid privately requires no entry in the firm's books, so (D)-(I).
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