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On admission the new partner privately paid goodwill premium to old partners. What entry will be made in firm's books?

Answer and explanation

Correct answer: No entry will be made

Private payment does not pass through the firm's bank or accounts. Therefore no entry is made in the firm's books.

Related tags

GoodwillPrivate PaymentAdmissionPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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