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On retirement old goodwill of ₹ 50000 is written off and the retiring partner's claim in new goodwill is ₹ 60000. Which statement is correct?

Answer and explanation

Correct answer: Old goodwill will be written off in old ratio and new claim will be borne in gaining ratio

Old goodwill belongs to old partners and new goodwill burden is borne by gainers. Mixing both is a common mistake.

Related tags

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

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