CUET Preparation Today
G, H and P are partners. On retirement of G, the goodwill already appears in the Balance Sheet at ₹24,000. The goodwill will be written-off....... |
By debiting all partners capital accounts in their old profit sharing ratio By debiting remaining partners capital accounts in their new profit sharing ratio. By debiting retiring partners' capital accounts from his share of goodwill. By debiting retiring partners' capital accounts in gaining ratio. |
By debiting all partners capital accounts in their old profit sharing ratio |
The correct answer is option 1- By debiting all partners capital accounts in their old profit sharing ratio. The goodwill will be written-off by debiting all partners capital accounts in their old profit sharing ratio. The existing goodwill is the written off by debiting the partner's capital account in the old ratio of the partners and crediting goodwill. The following journal entry is passed for this- Partner's Capital A/c Dr. |
