On dissolution, all assets (including Goodwill appearing in Balance Sheet) are transferred to the debit side of Realisation Account at book value. Any amount realised from sale of goodwill is credited to Realisation A/c.
On 1/4/22, X and Y decided to dissolve their firm. On that date of dissolution, Goodwill appeared at Rs. 5,00,000 in the Balance Sheet. Goodwill will be:
Held on 20 Aug 2022 · Verified 13 Jul 2026.
Transferred to the debit side of realisation A/C
Transferred to the credit side of partner's Capital A/c in their profit sharing ratio
Transferred to the credit side of realisation A/c
Transferred to cash account
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An unrecorded asset is taken over by a creditor in full settlement in such a case
The liability of partners is
As per AS-26 Intangible assets like goodwill should be written off.
Identify the correct statement from the given below :-
By virtue of which section of the Indian Partnership Act 1932, partnership is defined as 'the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all'.
Work through every CUET UG Partnership PYQ, year by year.