CUET Preparation Today
| On retirement of a partner, goodwill will be credited to the Capital Account of: |
Retiring Partner Remaining Partners All Partners None of the Above |
| Retiring Partner |
| When goodwill does not appear in the books of the firm, credit in given to the retiring partner for the share in goodwill by debiting the goodwill account to gaining partners capital accounts (individually) in their gaining ratio. The journal entry is : Gaining Partners Capital A/c Dr. (Individually) To Retiring Partners Capital A/c (Share in goodwill of retiring partner adjusted) |
