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Old goodwill of (₹90000) is appearing in books. Why is it written off before admission?

Answer and explanation

Correct answer: Because goodwill needs fresh treatment in new partnership

Old goodwill belongs to old partners and is written off in old ratio before admission. This avoids double effect in new books.

Related tags

GoodwillOld GoodwillWrite OffPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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