Gobind, Hari and Pratap are partners. On retirement of Gobind, the goodwill already appears in the Balance Sheet at Rs. 24,000. The goodwill will be written-off-
Answer & explanation
Correct answer: option 1
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, any decision to write it off relates to past periods; therefore, the write-off is borne by all existing partners (including the retiring one) in the old ratio.