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easyMCQCUET Accountancy 2025 24 May Shift 12026Accountancy
1 mark

, and are partners in a firm. On retirement/death of , his capital account will be credited with:

  1. A
    His share of goodwill
  2. B
    Share of goodwill of
  3. C
    Share of goodwill of
  4. D
    Goodwill of the firm

Solution & Step-by-step Explanation

Upon leaving or passing away, the outgoing partner () is entitled to receive compensation for his accrued share of goodwill from the gaining partners. Thus, his capital account is credited explicitly with his share of goodwill.

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, and are partners in a firm. On retirement/death of , his capital account will be credited with:
A
His share of goodwill
B
Share of goodwill of
C
Share of goodwill of
D
Goodwill of the firm

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