When a new partner brings in capital for his share of goodwill in cash, the journal entry is: MCQ with Answer and Explanation

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When a new partner brings in capital for his share of goodwill in cash, the journal entry is:

A. Cash A/c Dr. To Partner's Capital A/c

B. Cash A/c Dr. To Premium for Goodwill A/c

C. Cash A/c Dr. To Goodwill A/c

D. Premium for Goodwill A/c Dr. To Cash A/c

Answer: Option B

Solution (By JKSSB Mock Tests)

If the incoming partner pays for goodwill privately or through firm, if paid to firm, entry is Cash Dr. To Premium for Goodwill A/c.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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The 'Revenue Deficit' is:

A. Capital expenditure minus capital receipts

B. Total expenditure minus total receipts

C. Fiscal deficit minus borrowings

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Correct Answer: Option D

Explanation:
Revenue deficit = Revenue expenditure - Revenue receipts.

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Question #2

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Correct Answer: Option B

Explanation:
The opening entry records the closing balances of real and personal accounts from the previous year into the new books.

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Question #3

The 'Financial Year' for a company under Companies Act is:

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Correct Answer: Option B

Explanation:
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This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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