If existing goodwill account balance is (₹18000) and old partners are equal how much is debited to each?

Correct answer: ₹6000

Direct answer: Each old partner is debited ₹6,000, so option A is correct, assuming there are three equal old partners. An existing goodwill balance is written off among the old partners in their old profit-sharing ratio. Since the question refers to A, B and C in the retirement context and says they are equal, each partner has an equal fraction, namely 1/3. Thus the amount for each is ₹18,000 ÷ 3 = ₹6,000. Option A is correct because three equal debits total ₹18,000. Option B, ₹9,000, would apply to only two equal partners, not three. Option C, ₹18,000, charges the entire balance to one partner and ignores the old ratio. Option D, ₹3,000, would not remove the whole balance when three partners are involved. In the journal entry, the partners' capital accounts are debited and the goodwill account is credited. Memory cue: write off old goodwill in the old ratio.