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What is the final purpose of raising goodwill account and writing it off in new ratio?

Answer and explanation

Correct answer: To adjust goodwill without keeping it in books

This brings goodwill effect into capital accounts but closes goodwill account. In exams final balance remains nil.

Related tags

GoodwillRaise And Write OffPurposePartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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