Ram, Karan and Shyam are partners. On retirement of Ram, the goodwill already appears in the Balance Sheet at Rs. 32,000 . This existing goodwill will - Accountancy MCQ CUET Accountancy 2025 24 May Shift 1 2026 | ExamTest.live

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Ram, Karan and Shyam are partners. On retirement of Ram, the goodwill already appears in the Balance Sheet at Rs. 32, 000 . This existing goodwill will be written-off:

A $By debiting the capital accounts of Ram, Karan and Shyam in their old profit sharing ratio$
B $By debiting the capital accounts of Karan and Shyam in their new profit sharing ratio$
C $By debiting the capital account of Ram from his share of goodwill$
D $By debiting the capital accounts of Karan and Shyam in their old profit sharing ratio$

Solution & Step-by-step Explanation

Any goodwill already existing in the books (Balance Sheet) at the time of retirement or admission must be written off immediately by debiting all partners' capital accounts (including the retiring partner) in their old profit-sharing ratio. Partners’ Capital A/cs (Old) Dr. To Goodwill A/c

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Ram, Karan and Shyam are partners. On retirement of Ram, the goodwill already appears in the Balance Sheet at Rs. 32, 000 . This existing goodwill will be written-off:

By debiting the capital accounts of Ram, Karan and Shyam in their old profit sharing ratio

By debiting the capital accounts of Karan and Shyam in their new profit sharing ratio

By debiting the capital account of Ram from his share of goodwill

By debiting the capital accounts of Karan and Shyam in their old profit sharing ratio

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