Practicing Success
Practicing Success
CUET Preparation Today
A, B and C are partners sharing profits in the ratio of 5 : 3 : 2. On retirement of C, the goodwill already appears in the balance sheet at ₹24,000. The goodwill will be written off: |
By debiting all partner's capital accounts in their old profit sharing ratio By debiting remaining partner's capital accounts in their new profit sharing ratio By debiting retiring partner's capital accounts for his share of goodwill By crediting all partner's capital accounts in their old profit sharing ratio |
By debiting all partner's capital accounts in their old profit sharing ratio |
The correct answer is Option (1) - By debiting all partner's 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. |
