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Class 12 Accountancy Partnership Accounts - Basic Concepts GoodwillMedium

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Old ratio is (3:2), new ratio is (4:1) and goodwill is (₹50000). What is A's net effect when goodwill is raised and written off?

Answer and explanation

Correct answer: Debit A (₹10000)

A is credited (₹30000) in old ratio and debited (₹40000) in new ratio. Net effect is (₹10000) debit.

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Goodwill Raise Write Off Net Effect Partnership Accounts Basic Concepts Accountancy Class 12 Mcq

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