— Kishore V, SME and ACW at Edumarz
If there is any goodwill in the former firm’s records, it should be written off among the old partners in their old profit sharing raito. For this, the following journal entry should be used:
Date | Particulars | Debit | Credit |
Old Partner’s Capital A/c Dr To Goodwill A/c (Goodwill Written off during old ratio) | XXX | XXX |