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.
Existing goodwill is written off by debiting old partners capital account in their old ratio and crediting goodwill. It will reduce the capital balance of the partners account.