How goodwill is recorded on the retirement of a partner?

a.

Dr. Remaining partners capital a/c (In new ratio) & Cr. Retiring partners capital a/c( with his share of goodwill)

b.

Dr. Goodwill account & Cr. All partners capital a/c (in old ratio)

c.

Dr. Goodwill a/c & Cr. Retiring partners capital a/c (with his share)

d.

Dr. Remaining partners capital a/c (In gaining ratio) & Cr. Retiring partners capital a/c (with his share of goodwill)

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A and B are partners sharing profits and losses in the ratio of 5:3. C is admitted as a new partner for 1/5^th share. C brings OMR 10,000 as his capital and necessary amount of his share of goodwill in cash. Total goodwill of the firm is OMR 40,000. Goodwill already appears in the balance sheet of A and B is OMR 5,000. What are the possible journal entries for the above given information?

a.

Premium a/c Dr. 8,000 To As Capital a/c 5,000 To Bs capital a/c3,000

b.

As Capital a/c Dr 3,125 Bs capital a/c Dr. 1,875 To Goodwill a/c 5,000

c.

Cash a/c Dr. 18,000 To C's capital a/c 10,000 To premium a/c 8,000

d.

All options are possible journal entries