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If a new partner brings only capital but not goodwill amount separately how can old partners be given goodwill?

Answer and explanation

Correct answer: By debiting new partner capital account and crediting old partners

When cash is not brought goodwill is adjusted through capital accounts. Old partners are credited in sacrificing ratio.

Related tags

GoodwillAdmissionCapital AdjustmentPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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