Question

How Goodwill is recorded on the retirement of a partner?

Options

• Remaining Partner’s Capital A/c  Dr. (In Gaining Ratio)
         To Retiring Partner’s Capital A/c (with his Share of Goodwill)

• Remaining Partner’s Capital A/c   Dr. (In New Ratio)
        To Retiring Partner’s Capital A/c (with his Share of Goodwill)

• Goodwill A/c   Dr.
         To All Partner’s Capital A/c (In Old Ratio)

• Goodwill A/c   Dr.
    To Retiring Partner’s Capital A/c (with his Share)

Answer 1

Remaining Partner’s Capital A/c   Dr. (In Gaining Ratio)
       To Retiring Partner’s Capital A/c (with his Share of Goodwill)