Practicing Success
On retirement of a partner, the retiring partner's capital account will be credited with : |
His/her share of goodwill Goodwill (valued) of the firm Share of goodwill of remaining partners Existing goodwill of the firm |
His/her share of goodwill |
The correct answer is option 1-His/her share of goodwill. The sum due to the retiring partner (in case of retirement) and to the legal representatives/ executors (in case of death) includes: |