Partnership Goodwill

Postby mknight on Thu Jan 12, 2006 12:44 pm

In a three-person partnership, what happens to the goodwill figure in the balance sheet when one of the partners retires?

Say, for example, the two remaining partners pay the outgoing partner £10k.
mknight
 
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Postby deanshepherd on Fri Jan 13, 2006 1:14 am

Nothing.

The £10k payment is not a partnership transaction in a similar way that buying and selling shares has no effect on a company's balance sheet.


Dean Shepherd
dean.shepherd@mmi-online.co.uk
MMI Accountancy
www.mmi-online.co.uk
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