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Question : What journal entry will be made to write off the goodwill that was already present in the balance sheet at the time of partner retired?

Option 1: Retiring Partner’s Capital A/c          Dr.

               To Goodwill A/c

Option 2:  All Partner’s Capital A/cs (including retiring)         Dr. (in old ratio) 

                   To Goodwill A/c

Option 3: Remaining Partner’s Capital A/cs              Dr. (in gaining ratio) 

                         To Goodwill A/c

Option 4: Remaining Partner’s Capital A/cs         Dr. (in new ratio)

                To Goodwill A/c