Why exactly is the retiring partner credited when the goodwill is adjusted by the continuing partner? Like why Continuing partner a/c dr To retiring partner a/c Kinda confusing

Question

Likitha · Answer

Thank you!!😁

Salik · Answer

Yup

Likitha · Answer

So he is getting credited cuz he is leaving his part of profits (giver)?

Teja · Answer

And while he was a partner his goodwill also included in the firm

Teja · Answer

Yes retiring partner as to get share in the firm bcz he has right to get share of profits

Likitha · Answer

So what does it have to do with that?😅 I'm sorry

Salik · Answer

Because the retiring partner is leaving his part of share in the profit.

Likitha · Answer

But isn't the retiring partner supposed to get the goodwill?

Deepak · Answer

Just apply the rule of Debit the receiver Credit the Giver....

Why exactly is the retiring partner credited when the goodwill is adjusted by the continuing partner? Like why Continuing partner a/c dr To retiring partner a/c Kinda confusing

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