This question was previously asked in
Shift 29/05/2023 3:30 PM - 6:30 PM
Correct Answer
A. Credit balance of his/her Capital/Current Account: When a partner retires, any credit balance in their Capital or Current Account is typically payable to them.
B. Share of goodwill: If the partnership deed specifies that a retiring partner is entitled to a share of the goodwill, this amount is payable to the retiring partner.
D. Share in revaluation gain/loss: If the partnership agreement outlines that a retiring partner is entitled to a share of revaluation gains or losses, this amount is payable to the retiring partner.
E. Share in accumulated profits (Reserves): If the partnership agreement stipulates that a retiring partner is entitled to a share of accumulated profits or reserves, this amount is payable to the retiring partner.
C. Goodwill of the firm: Goodwill of the firm, unless specifically mentioned in the partnership deed, is not typically payable to a retiring partner. Goodwill of the firm is an intangible asset that belongs to the ongoing business and is not usually paid out to retiring partners unless otherwise agreed upon in the partnership agreement.
So, the items payable to a retiring partner are A, B, D, and E, as long as they are mentioned in the partnership deed.
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