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Why is goodwill adjusted in case of death of a partner?

Answer and explanation

Correct answer: Because the deceased partners share in future profit ends

The deceased partners representative is compensated for his share of goodwill. This adjustment arises because continuing partners gain.

Related tags

GoodwillDeath-Of-PartnerGaining-RatioConceptPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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