Practicing Success
Practicing Success
CUET Preparation Today
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: |
By debiting all the partner capital account in old profit sharing ratio By debiting remaining partner capital account in the new profit sharing ratio By debiting retiring partner's capital account from his share of Goodwill By crediting all partner's capital account in their old profit sharing ratio |
By debiting all the partner capital account in old profit sharing ratio |
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. |
