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At the time of retirement of a partner, the retiring partner’s Capital account will be credited with:
Question

At the time of retirement of a partner, the retiring partner’s Capital account will be credited with:

A.

His/her Share of Goodwill

B.

Goodwill of the firm

C.

Share of Goodwill of remaining partners

D.

Undistributed losses

Correct option is A

When a partner retires, their Capital account is credited with their share of goodwill. Goodwill represents the value of a firm's reputation and customer relationships. The retiring partner is entitled to a portion of this intangible asset, reflecting their contribution to the firm's value.

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CUET 2025 English Language Mock 01

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