English

State Whether the following Statement is True or False: Goodwill given to the retiring partner is shared by continuing partners in their sacrificing ratio.

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Question

State Whether the following Statement is True or False:

Goodwill given to the retiring partner is shared by continuing partners in their sacrificing ratio.

True or False
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Solution

The statement is false.

Explanation:

The goodwill compensation given to the retiring partner is borne by the continuing partners in their gaining ratio, not their sacrificing ratio.

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Chapter 4: Retirement or Death of a Partner - OBJECTIVE TYPE QUESTIONS [Page 4.157]

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D. K. Goel Accountancy Part A Volume 1 and 2 [English] Class 12
Chapter 4 Retirement or Death of a Partner
OBJECTIVE TYPE QUESTIONS | Q (B) 16. | Page 4.157
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