Objective type questions :
Answer in one sentence only.

How would you adjust retiring partner’s share of goodwill without opening goodwill account?

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Solution

The retiring partner is paid his share of goodwill by debiting the Remaining Partners’ Capital Accounts in their gaining ratio and crediting the Retiring Partner’s Capital Account with the amount of premium.

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Objective type questions : Answer in one sentence only. How would you adjust retiring partner’s share of goodwill without opening goodwill account?

The retiring partner is paid his share of goodwill by debiting the Remaining Partners’ Capital Accounts in their gaining ratio and crediting the Retiring Partner’s Capital Account with the amount of premium.

Objective type questions :
Answer in one sentence only.

How would you adjust retiring partner’s share of goodwill without opening goodwill account?