CUET Preparation Today
How is the retiring/deceased partner compensated for his share of goodwill? |
Through a third party consultant Through the acquisition of the partner's personal assets Through the dissolution of the partnership Through a reduction in the capital account of the gaining partners |
Through a reduction in the capital account of the gaining partners |
The remaining partners who will be gained on retirement or death will compensate the retiring partner for his share of goodwill. The capital account of the remaining partners will be debited and the capital account of the deceased or retiring partner will be credited for his share of goodwill. The gaining partner will compensate the retiring partners in gaining ratio. |
