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If goodwill amount is not paid immediately in cash what can be done for the retiring partner?

Answer and explanation

Correct answer: Amount due may be transferred to his loan account

If cash is not paid the amount due may be kept in the retiring partner loan account. This separates settlement from payment timing.

Related tags

GoodwillRetiring-Partner-LoanSettlementGoodwill SettlementReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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