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Old goodwill of ₹ 50000 is written off and the retiring partner's share in new goodwill is ₹ 30000. If continuing partners adjust new goodwill correctly in gaining ratio then which principle is correct?

Answer and explanation

Correct answer: Old goodwill will be in old ratio and new goodwill in gaining ratio

Old goodwill belongs to all old partners and new goodwill burden is borne by gainers. Remember this distinction.

Related tags

Goodwill-SettlementExisting-GoodwillConceptGoodwill SettlementReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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