Question : When a partner retires his share of goodwill is
Option 1: Cr. to his account
Option 2: Dr. to his account
Option 3: Either 1 and 2
Option 4: No of the above
Correct Answer: Cr. to his account
Solution : Answer = Cr. to his account
When a partner retires, their share of goodwill is typically credited to their account. This adjustment reflects the outgoing partner's portion of the goodwill, ensuring an accurate representation of the remaining goodwill within the partnership's financial records. Hence, the correct option is 1.
Question : How is goodwill recorded when a partner retires?
Question : Name two items which are credited to the Capital Account of a partner upon his death.
Question : Choose the correct Journal entry, when deceased partners share is loss:
Question : Which of the following statements is correct?
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