Assertion (A): At the time of retirement of a partner, if the retiring partner is paid more amount than due to him, the difference amount is goodwill paid based on valuation.
Assertion (A): At the time of retirement of a partner, if the retiring partner is paid more amount than due to him, the difference amount is goodwill paid based on valuation.
Reason (R): Goodwill is not paid by the Gaining Partners to the Sacrificing Partners.
Anurag Pathak Changed status to publish July 2, 2023
Ans – c)
The difference between amount due and paid to the retiring partners is the share in goodwill paid on valuation. Thus Assertion is correct.
The gaining partners compensate the amount of goodwill due to the retiring partners in gaining ratio. Thus Resaon R is incorrect.
Anurag Pathak Changed status to publish July 2, 2023
