Question

Goodwill given in the old balance sheet will be:

Options

• Distributed by Gainer partners

• Credited to old Partners Capital accounts

• Written off by the Sacrificing partners

• Written off to the old partners

Answer 1

Written off to the old partners

Explanation:

Goodwill existing in the old balance sheet of a partnership firm before admitting a new partner will be written off to the capital accounts of the old partners in their old profit sharing ratio. This Goodwill belongs to old partners only.