CameraIcon

SearchIcon

MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Admission of New Partner

Why heirs of ...

Question

Why heirs of a retiring / decreased partner are entitled to a share of goodwill of the firms?

Open in App

Solution

The heirs of a retiring/deceased partner are entitled to a share of goodwill of the firm as after the retirement/death of a partner, the fruits of the collective past performances and reputation will be shared only by the continuing partners. Hence, the remaining partners compensate the retiring or the deceased partner by entitling him/her a share of the firm's goodwill.

Suggest Corrections

thumbs-up

0

Similar questions

Why a retiring/deceased partner is entitled to a share of goodwill of the firm?

Q. Short answer type question:
Why heirs of deceased partner are entitled to share of goodwill of the firm?

Q. State whether the following statements are true or false :

Retiring partner is entitled to his share of goodwill.

Q. Short answer type question:
For which share of goodwill a partner is entitled at the time of retirement?

Q. A,B and C are three partners in a partnership firm sharing profit and loss equally. C retires from the firm on 31st March.His share of profit is purchased by A and B in the ratio of 2:1.If at the time of retirement, value of the goodwill of the firm is valued at Rs.54,000, and the partners decides to pay goodwill to the retiring partner, what will be accounting treatment?

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Admission of a Partner

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Admission of New Partner

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon