Assertion (A): Anahat and Parminder are partners sharing profits in the ratio of 2:1. They admit Rubayat as partner w.e.f. 1st January 2021. On that date, Goodwill existed in the books at ₹1,00,000. Goodwill of ₹50,000 was written off by debiting capital accounts of Anahat and Parminder in the ratio of 2:1. While balance goodwill was carried forward in the Balance Sheet.
Reason (R): Goodwill existing in the books is purchased goodwill and therefore, is not written off.
Reason (R): Goodwill existing in the books is purchased goodwill and therefore, is not written off.
Answer & explanation
Correct answer: option 4
₹1,00,000 goodwill must be written off from the books completely not partially. Thus both Assertion and Reason are false.