At the time of admission of a new partner, under the fixed capital method, if the sacrificing partners withdraw their amounts of goodwill (in full or - Accountancy MCQ CUET Accountancy 2025 3 June Shift 2 2026 | ExamTest.live

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At the time of admission of a new partner, under the fixed capital method, if the sacrificing partners withdraw their amounts of goodwill (in full or in part), which of the following journal entries will be recorded?

Solution & Step-by-step Explanation

Under the Fixed Capital Method, all systematic adjustments, shares of premium for goodwill, and short-term withdrawals of profits/goodwill are processed through the Partner's Current Account. When partners withdraw premium money, their Current Account is debited: Sacrificing Partners’ Current A/c Dr. To Bank A/c

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At the time of admission of a new partner, under the fixed capital method, if the sacrificing partners withdraw their amounts of goodwill (in full or in part), which of the following journal entries will be recorded?

Sacrificing Partners' Capital A/c Dr. To Bank A/c

Sacrificing Partners' Current A/c Dr. To Bank A/c

Gaining Partners' Current A/c Dr. To Bank A/c

Gaining Partners' Capital A/c Dr. To Bank A/c

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