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Goodwill appears in old books at ₹48000. A and B share in old ratio (5:1). What is the effect on A's capital when goodwill is written off before admission?

Answer and explanation

Correct answer: Debited by ₹40000

Old goodwill is written off among old partners in old ratio. A's share is (48000 \times 5/6 = ₹40000) debit.

Related tags

Old GoodwillWrite OffOld RatioGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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