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
Answer (1)
20th Jan, 2024
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.
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