while calculating relief us 37 of Indian partnership act ,1932
relief will be maximum of
1. interest @ 6%pa
2 . (post retirement profit×balance of outgoing partner )/ balance of remaining+balance of outgoing +Goodwill if not raised
I don't understand why Goodwill is here in calculation
Menu
partnership account
Replies (1)
As partner had continued to firm since last many year so he/she must have contributed to firm in the form of money and generation of value (i.e. goodwill)
at the time of retirement he/she must be paid for capital balance and calculated goodwill amount the benefit of which will be enjoyed by continuing partners
hence good is added along with closing capital balances
Note : it is assumed that praportionate share of goodwill is also in capital balance of retiring partner
Recent Threads
- Unable to Enter Values Indexed Cost on Sale of Hou
- AI-Powered Taxation in 2025: How GST, ITR, and Aud
- How to Manage Time as a CA Aspirant – Smart
- Completing the ITR-3 Form Online: A Complete Guide
- GSat on sale of assets
- 234 f penalty
- GST REGISTRATION FOR CARPENTER WORK
- Standard deduction for family pensioners
- Concerning tax savings or understanding the long-t
- F&O losses
Related Threads
CAclubindia
