Gobind, Hari and Pratap are partners. On the retirement of Gobind, the goodwill already appears in the Book at ₹24,000. The goodwill will be written off:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → By debiting all the partner capital account in old profit sharing ratio
Goodwill already in the books was built up while all three partners were in the firm. Before the retiring partner’s share is settled, this existing goodwill is written off among all the partners, Gobind included, in their old profit sharing ratio.
Option (2) By debiting remaining partner capital account in the new profit sharing ratio — Incorrect. The goodwill was earned under the old ratio; leaving Gobind out would put his share of the write-off on Hari and Pratap.
Option (3) By debiting retiring partner’s capital account from his share of Goodwill — Incorrect. The whole book goodwill is written off, not only Gobind’s share of it.
Option (4) By crediting all partner’s capital account in their old profit sharing ratio — Incorrect. Writing off an asset reduces the partners’ capitals, so their accounts are debited, not credited.
NCERT (2026-27 edition):
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