Question : On retirement of a partner,
Option 1: Goodwill is brought up to new value and recorded as assets
Option 2: Goodwill is brought up to new value and then written off
Option 3: Goodwill is adjusted between partners through capital account
Option 4: Goodwill is raised to extent of retiring partner's share
Correct Answer: Goodwill is adjusted between partners through capital account
Solution : Answer (3) Goodwill is adjusted between partners through a capital account.
On the retirement of a partner, goodwill is adjusted between partners through capital accounts. This means that any increase or decrease in the value of goodwill is distributed among the remaining partners in their respective capital accounts, ensuring that the retiring partner's share of goodwill is appropriately accounted for in the partnership. Hence, the correct option is 3.
Question : Upon partner retirement,Goodwill will be credited to the capital account of -
Question :
Which of the following statement is correct?
Question : How is goodwill recorded when a partner retires?
Question : Arrange the following steps in proper sequence When the Retiring Partner is to be paid through amount brought by the Remaining or Continuing partners in a manner to make their Capitals Proportionate to their New Profit-sharing Ratio and also leave a desired Cash
Question : When the Retiring Partner is to be paid through amount brought by the remaining partners in a manner to make their capitals proportionate to their New Profit-sharing Ratio. Arrange the following steps in proper sequence I. Calculate Adjusted Capital of remaining partners
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