Question

What would be the journal entry for if goodwill is raised at full value and retained in books?

Options

• Goodwill A/c Dr To A's Capital A/c To B's Capital A/c To C's capital A/c 

• A's Capital A/c Dr., B's Capital A/c Dr., C's Capital A/c Dr To Goodwill A/c

• Can't say

• None of these

Answer 1

Goodwill A/c Dr To A's Capital A/c To B's Capital A/c To C's capital A/c

Explanation:

Goodwill is increased to its full value and credited to all partners according to their old profit sharing ratio.