Question

If goodwill is already appearing in the books of accounts at the time of retirement of a partner, then it should be written off in ______.

Options

• New Ratio

• Gaining Ratio

• Sacrificing Ratio

• Old Ratio

Answer 1

If goodwill is already appearing in the books of accounts at the time of retirement of a partner, then it should be written off in Old Ratio.

Explanation:

If goodwill already exists in the books at the time of a partner's retirement, it should be written off in the old profit sharing ratio.