During the retirement of a partner, if goodwill appears in the Balance Sheet, it must be written off and the capital a/c of all the partners are debited in a. The old profit sharing ratio b. The new profit sharing ratio c. The capital ratio d. None of the above
If at the time of retirement of a partner, goodwill appears in the balance sheet of the firm, it will be written-off by debiting the capital accounts of all partners and credting goodwill account.
