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On retirement of a partner, if goodwill is not already recorded in the firm's books, from whose capital accounts is the retiring partner’s share of goodwill generally adjusted?

Answer and explanation

Correct answer: शेष साझेदारों के पूँजी खातों से, उनके लाभ-अर्जन अनुपात में

The retiring partner gives up a right to future profits. Hence, the continuing partners bear the goodwill adjustment and their capital accounts are debited in the gaining ratio. Use gaining ratio, not merely the new ratio, in exams.

Related tags

Partnership AccountsRetirement Of PartnerGoodwill AdjustmentGaining RatioCapital AccountsClass 12 AccountancyGoodwill SettlementReconstitution Retirement Or Death Of A Partner

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