Question

Which of these statements is true?
A Goodwill at the time of retirement of a partner is credited to remaining partner's capital A/c in sacrificing ratio.
B Goodwill at the time retirement of a partner is credited to remaining partner's capital A/c in gaining ratio.
C Goodwill at the time of retirement of a partner is debited to remaining partner's capital A/c in sacrificing ratio.
D Goodwill at the time of retirement of a partner to the extent of retiring partner's share is debited to remaining partner's capital A/c in gaining ratio. Correct Answer

Answer 1

Correct option is D)
The valuation of goodwill at time of retiring in gaining ratio and retiring partner's is debited to partner's capital account.