Accounting treatment of Goodwill

Accounting treatment of Goodwill

Multiple Choice

Sudhir and Iqbal are partners in a partnership firmsharing profits and losses in the ratio of 2:1. On 1st April2018 Bharat comes in as a partner for 1/4th share in the firms profit. Bharat contributes ₹15,000 as capital and ₹4,500 as goodwill. The journal entry of contributing Capital is :

• Bharat's Ac Dr

  To capital

• Cash A/c Dr.

  To Bharat's Ca[ital

• Bharat's Capital A/c Dr

  To cash

• None of the above

Multiple Choice

Sudhir and Iqbal are partners in a partnership firmsharing profits and losses in the ratio of 2:1. On 1st April2018 Bharat comes in as a partner for 1/4th share in the firms profit. Bharat contributes ₹15,000 as capital and ₹4,500 as goodwill. The journal entry of Godwill when Goodwill amount is paid privately :

• Premium of Goodwill A/c Dr

  To Bhara'ts Capital A/c

• Cash A/c Dr.

  To Bharat's Capital A/c

• No entry

• None of the above

Multiple Choice

Sudhir and Iqbal are partners in a partnership firmsharing profits and losses in the ratio of 2:1. On 1st April2018 Bharat comes in as a partner for 1/4th share in the firms profit. Bharat contributes ₹15,000 as capital and ₹4,500 as goodwill. The journal entry of Godwill when Goodwill is retained in business :

• Premium of Goodwill A/c Dr

  To Cash

• Premium of Goodwill A/c Dr.

  To Sudhir's Capital A/c

  To Iqbal's ca[pital A/c

• No entry

• None of the above

Multiple Choice

Sudhir and Iqbal are partners in a partnership firmsharing profits and losses in the ratio of 2:1. On 1st April2018 Bharat comes in as a partner for 1/4th share in the firms profit. Bharat contributes ₹15,000 as capital and ₹4,500 as goodwill. The journal entry of Goodwill when contributing Goodwill.

• Premium of Goodwill A/c Dr

  To cash

• Cash Dr

  To premium for Goodwill

• Cash A/c Dr

  To Bharat's capital A/c

• No entry

Multiple Choice

Anirudh and Pam are partners in a partnership Firm sharing Profit in the ratio of 2:1. they admitted Dolly as new partner for 1/4th share. Dolly contribute 50,000 as capital and bring a machine costing ₹20,000 as goodwill. The journal entry of Bringing Goodwill is :

• Cash A/c Dr

  Premium of Goodwill A/c

• Premium of Goodwill A/c Dr

  To Cash

• Machinery A/c Dr

  To premium of goodwill A/c

• Premium for Goodwill A/c Dr

  To Machinery A/c

Multiple Choice

Anirudh and Pam are partners in a partnership Firm sharing Profit in the ratio of 2:1. they admitted Dolly as new partner for 1/4th share. Dolly contribute 50,000 as capital and bring a machine costing ₹20,000 as goodwill. The journal entry of Goodwill when retained in the business is :

• Premium for Goodwill A/c Dr

  To Anirudh's Capital A/c

  To Pam's Capital A/c

• Anirudh's Capital A/c Dr

  Pam's Capital A/c Dr

  To premium for Goodwill A/c

• No entry

• None of the above

Multiple Choice

Anirudh and Pam are partners in a partnership Firm sharing Profit in the ratio of 2:1. they admitted Dolly as new partner for 1/4th share. Dolly contribute 50,000 as capital and bring a machine costing ₹20,000 as goodwill. The journal entry of Goodwill when partners withdrawn by the partners:

• Cash A/c Dr

  To Anirudh's Capital A/c

  To pam's Capital A/c

• Anirudh's Capital A/c Dr

  Pam's Capital A/c Dr

  To premium for Goodwill A/c

• Anirudh's Capital A/c Dr

  Pam's Capital A/c Dr

  To Cash

• None of the above

Multiple Choice

Anirudh and Pam are partners in a partnership Firm sharing Profit in the ratio of 2:1. they admitted Dolly as new partner for 1/4th share. Dolly contribute 50,000 as capital and bring a machine costing ₹20,000 as goodwill. The journal entry of Goodwill when all partners have decided that goodwill should not appear in the books of new firm:

• Premium for Goodwill A/c Dr.

  To Anirudh's Capital A/c

  TO pam's Capital A/c

• Anirudh's Capital A/c Dr

  Pam's Capital A/c Dr

  To premium For goodwill A/c

• No entry

• None of the Above