Why a retiring or heirs of a deceased partner are entitled to a share of goodwill of the firm? Post category:Accountancy Reading time:1 mins read SOLUTION Since the retiring or deceased partner will not be sharing future profits; goodwill is given to compensate him for the same. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostWhy are assets and liabilities revalued at the time of retirement of a partner? Next PostCan a retiring partner or Legal Representatives of a Deceased Partner claim a share in the subsequent profits of the firm. You Might Also Like What is meant by dissolution of partnership? September 27, 2022 What is Sacrificing Ratio? September 26, 2022 X and Y are partners with capitals of Rs. 50,000 each. They admit Z as a partner for 1/4th share in the profits of the firm. Z brings in Rs. 80,000 as his share of capital. The Profit and Loss Account showed a credit balance of Rs. 40,000 as on date of admission of Z. Give necessary journal entries to record the goodwill. August 1, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
X and Y are partners with capitals of Rs. 50,000 each. They admit Z as a partner for 1/4th share in the profits of the firm. Z brings in Rs. 80,000 as his share of capital. The Profit and Loss Account showed a credit balance of Rs. 40,000 as on date of admission of Z. Give necessary journal entries to record the goodwill. August 1, 2022