Rohan, Bharti and Leela are partners. On the retirement of Rohan, the goodwill already appears in the balance sheet at Rs. 24,000. The goodwill will be written-off:

By debiting all partners' capital accounts in their old profit-sharing ratio.

The correct answer is Option (1) → By debiting all partners' capital accounts in their old profit-sharing ratio.

• When goodwill already appears in the Balance Sheet and a partner retires, it must be written off before adjusting for the retiring partner’s share.

• The existing goodwill represents a past benefit shared by all partners in their old profit-sharing ratio.

• Hence, it should be written off (i.e., reduced to zero) by debited to all partners’ capital accounts in that old ratio.