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If old goodwill already appears in the books at ₹30000 and partners A and B share profits in (2:1) how will it be written off before admission?

Answer and explanation

Correct answer: Debit A ₹20000 and B ₹10000

Existing goodwill is written off by debiting old partners' capital accounts in old profit-sharing ratio. For old goodwill use the old ratio.

Related tags

Old GoodwillWrite OffOld RatioGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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