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Class 12 Accountancy Partnership Accounts - Basic Concepts GoodwillExpert

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Goodwill account is raised at (₹300000). Old ratio is (5:1) and new ratio is (3:2). What is B's net effect?

Answer and explanation

Correct answer: Debit (₹70000)

B is credited (₹50000) in old ratio and debited (₹120000) in new ratio. Net effect is debit (₹70000).

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

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