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If the new partner brings only half of the goodwill in cash what is the usual treatment of the remaining part?

Answer and explanation

Correct answer: Remaining part is debited to new partner's capital or current account

Goodwill not brought in cash is treated as due from the new partner. Therefore the new partner's account is debited.

Related tags

GoodwillPartly BroughtAdmissionPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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