Govind, Hari and Pratap are partners. On retirement of Govind, the goodwill already appears in the Balance Sheet at ₹ 24,000. The goodwill will be written off:
A. By debiting all Partners’ Capital Accounts in their old profit-sharing ratio
B. By debiting remaining Partners’ Capital Accounts in their new profit-sharing ratio
C. By debiting retiring Partner’s Capital Account from his share of goodwill
D. None of these
Answer:A
Govind, Hari and Pratap are partners. On retirement of Govind, the goodwill already appears in the Balance Sheet at ₹ 24,000. The goodwill will be written off:
A. By debiting all Partners’ Capital Accounts in their old profit-sharing ratio B. By debiting remaining Partners’ Capital Accounts in their new profit-sharing ratio C. By debiting retiring Partner’s Capital Account from his share of goodwill D. None of these