what happens to d old goodwill in case of retirement ?

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Solution

The treatment for old goodwill is same as in the case of Admission of a Partner i.e. if any goodwill appears in the Balance Sheet before the retirement (old goodwill), then this Goodwill Account is written off by transferring its balance among old partners (including the Retiring partner) in their old profit-sharing ratio. The journal entry for same is as follows.
Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)

All Partner’s Capital A/c
Dr

To Goodwill A/c

(being old goodwill written off in old ratio)

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Similar questions

What is the treatment of goodwill in case of retirement of a partner ?

Who is liable to compensate for the goodwill in case of retirement of a partner?

Retiring partner’s share of goodwill is credited to his/her capital account at the time of retirement. State true of false.

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Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)

	All Partner’s Capital A/c	Dr
	To Goodwill A/c
	(being old goodwill written off in old ratio)