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

Explanation

At the time of retirement or is that the event of death of a partner the goodwill of the firm is adjusted among the partners in their gaining quantitative relation with the share of goodwill of the retiring or the deceased partner. At the time retirement or on the event of death of a partner, goodwill account isn't opened thus solely 2 things square measure left for treating the goodwill 1st once goodwill account is already there within the book or it seem within the books and second once the number of goodwill isn't showing within the books.



The treatment of goodwill are going to be as follows within the higher than two things



First state of affairs once Goodwill Already seems within the Books of the Firm



Step one Write -off the present Goodwill



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