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Why is the retiring partner capital account credited in goodwill adjustment?

Answer and explanation

Correct answer: Because he has to receive goodwill compensation

The retiring partner is entitled to his share of goodwill. In exams connect the receiver with credit.

Related tags

AccountancyRetiring PartnerGoodwillGoodwill SettlementReconstitution Retirement Or Death Of A PartnerClass 12 Mcq

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