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If the retiring partner's goodwill claim is ₹ 88000 and only the first of two continuing partners gains then what is the correct entry effect?

Answer and explanation

Correct answer: First partner's capital debited and retiring partner's capital credited

The partner who gains bears the goodwill burden. So the first partner's capital is debited and the retiring partner's capital is credited.

Related tags

Goodwill-SettlementJournal-EntrySingle-GainerGoodwill SettlementReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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