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Question
Write the word/term or phrase which can substitute the following statement.
Account which is credited when goodwill is withdrawn by old partners.
Solution
Cash/Bank A/c
Explanation: Cash/Bank A/c is credited when goodwill is withdrawn from the business by the old partners, following the rule "Credit what goes out". The amount brought in by the new partner as goodwill can be either withdrawn by the sacrificing partners fully or partly or can even be retained in the business.
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Answer in one sentence only.
When is goodwill account raised in the books of the firm?
Write the word/term or phrase which can substitute the following statement.
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