Question

At the time of Retirement of a partner, the existing goodwill appearing in the balance sheet of the firm is written off by debiting capital accounts of old partners in. Options = a=Old profit sharing ratio b= New profit sharing ratio C= Gaining ratio D= Sacrifice ratio​

Answer 1

Answer:

On retirement of a partner, goodwill appears in the balance sheet , it will be written-off by debiting the capital accounts of partners.

Explanation:

If goodwill already exists in the books at the time of a partner's retirement, it should be written off in the old profit sharing ratio