Question

Q.11. What journal entry will be
recorded for writing off the
goodwill already existing in Balance
Sheet at the time of retirement of a
partner?​

Answer 1

Retiring Partner's Capital A/c

Dr.

To Goodwill A/c

All Partner's Capital A/cs(including retiring)

Dr. (in old ratio)

To Goodwill A/c

Remaining Partner's Capital A/cs

Dr.(in gaining ratio)

To Goodwill A/c

Remaining Partner's Capital A/cs

Dr. (in new ratio)

To Goodwill A/c