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When goodwill already appears in the books and a new partner is admitted what is generally done first?

Answer and explanation

Correct answer: Existing goodwill is written off among old partners in old ratio

Existing goodwill in books should be written off among old partners before admission. This keeps the new adjustment clear.

Related tags

GoodwillExisting-GoodwillAdmissionAccounting-TreatmentPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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