At the time of death of a partner, what

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Target Exam

CUET

Subject

Accountancy

Chapter

Reconstitution of Partnership Firm: Retirement and Death

Question:

At the time of death of a partner, what treatment is done with goodwill appearing in the partnership firm's balance sheet?

Options:

Raised goodwill

Written off goodwill

Either 1 or 2

None of these

Correct Answer:

Written off goodwill

Explanation:

Goodwill appearing in the books will be written-off by debiting old partners' capital accounts in their old profit sharing ratio.