GCEFinancial AccountingPartnership Accounts2024

On the admission of a new partner, goodwill is raised and then written off immediately. The journal entry to write off goodwill among the OLD partners in the ratio 2:1 where goodwill is valued at ₦60,000 is

ADebit old partners' capital accounts ₦40,000 and ₦20,000; Credit Goodwill account ₦60,000CORRECT
BDebit Goodwill account ₦60,000; Credit old partners' capital accounts ₦40,000 and ₦20,000
CDebit new partners' capital accounts ₦60,000; Credit Goodwill account ₦60,000
DDebit Goodwill account ₦60,000; Credit all partners' capital accounts in new ratio
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Why the answer is A, and why the others tempt you.
When goodwill is written off, the Goodwill account (an asset) is credited to eliminate it, and the old partners' capital accounts are debited in their old profit-sharing ratio (2:1). This means the first old partner bears ₦40,000 and the second ₦20,000, totalling ₦60,000.
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