Q. How goodwill is recorded on the retirement of a partner?
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(A)
Remaining Partnerās Capital A/cs Dr. (In Gaining Ratio) To Retiring Partnerās Capital A/c (with his share of goodwill)
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(B)
Remaining Partnerās Capital A/cs Dr. (In New Ratio) To Retiring Partnerās Capital A/c (with his share of goodwill)
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(C)
Goodwill A/c Dr. To All Partnerās Capital A/cs (In Old Ratio)
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(D)
Goodwill A/c Dr. To Retiring Partnerās Capital A/c (with his share)
ā
Correct Answer: (A)
Remaining Partnerās Capital A/cs Dr. (In Gaining Ratio) To Retiring Partnerās Capital A/c (with his share of goodwill)