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Question

Goodwill already appearing in the books is written off by debiting all the partners’ capital account in the .

A
new ratio
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B
old ratio
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C
gaining ratio
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D
sacrificing ratio
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Solution

The correct option is B old ratio
When goodwill already appears in the books and is written off, we debit the partner's capital account and credit the goodwill account in their old ratio.

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