Question

Explain the treatment of goodwill at the time of retirement or on the event of death of a partner.

Answer 1

Your Answer is:-

The Journal Entry will be:-

Continuing partners A/c _Dr

To Retiring/Deceased Partner.

The effect will be as:-

The Retiring Partners' share will be debited to Partners Capital/Current account and the continuing partners share will be credited to Partners Capital/Current A/c

Hope it helps..