Question

If goodwill is written off a retiring partner's capital account is debited. (State True or False)

Answer 1

Yes

Bcz retiring partners withdrew his goodwill

True statement ✔️✔️

Answer 2

It is true that if goodwill is written off a retiring partner's capital account is debited.

Explanation:

• The goodwill is the intangible asset of the firm. In the case of partnership firm, they share the contributing of the capital in ratio wise.
• So, when the one of the partners retiring means they divide the good will, in the case when goodwill is written off at the time of retirement of the partners the goodwill account is debited to all partners account.