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Why Heirs of a Retiring/Deceased Partner Are Entitled to a Share of Goodwill of the Firm? - Accountancy

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Question

Why are heirs of a retiring/deceased partner entitled to a share of goodwill of the firm?

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Solution

The heirs of a retiring/deceased partner are entitled to a share of goodwill of the firm as it is the result of the combined efforts of all the partners.

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2013-2014 (March) Delhi Set 1
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