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If a new partner brings his goodwill premium in cash to whom is it credited?

Answer and explanation

Correct answer: To sacrificing old partners

Goodwill premium brought in cash is credited to old partners in sacrificing ratio. Bank is debited and old partners are credited.

Related tags

GoodwillPremium For GoodwillAdmissionPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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