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
1) by debiting all partners’ capital accounts in their old profit sharing ratio.
2) by debiting remaining partners’ capital accounts in their new profit sharing ratio
3)by debiting retiring partners’ capital accounts from his share of goodwill.
4)none of these.

Options

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 partners’ capital accounts from his share of goodwill.
D. none of these.

Answer

A