C retires. His share of goodwill is (₹90000) and the entire gain goes only to A. What will happen in adjustment?

Correct answer: Debit A (₹90000) and credit C (₹90000)

Direct answer: Option A is correct—Debit A ₹90,000 and credit C ₹90,000. Goodwill compensation is given to a retiring partner because that partner gives up the right to future profits. The amount is transferred to the partner who gains from the retirement. Here C retires, so C must receive credit for his goodwill share of ₹90,000. The whole benefit goes to A, so A is the gaining partner and A's capital account is debited. The entry is: A’s Capital Account Dr. ₹90,000; To C’s Capital Account ₹90,000. Option A correctly identifies both sides. Option B is wrong because B does not receive the stated gain. Option C reverses the required treatment: C is to be credited, not debited. Option D is wrong because an adjustment entry is needed even when cash is not paid. Memory cue: gaining partner is debited; retiring partner is credited.