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Commerce · Q601

Accounting

Graduate and Post Graduate · Commerce · question 601

Q601

Govind, Hari and Pratap are partners. On the retirement of Govind, the goodwill already appears in the balance sheet at Rs. 24,000. The goodwill will be written off by

A.
Debiting all partner's capital accounts in their old profit-sharing ratio
Answer
B.
Debiting remaining partner's capital accounts in their new profit-sharing ratio
C.
Debiting retiring partner's capital accounts from his share of goodwill
D.
None of the above

Answer: Option A

Solution

Answer: Option A
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