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If goodwill already appears in books at (₹200000) and new value is (₹350000), what is the correct treatment of old goodwill account before admission?

Answer and explanation

Correct answer: Old goodwill is written off in old ratio

Old goodwill appearing in books belongs to old partners. It is written off in old ratio before admission.

Related tags

GoodwillOld GoodwillAdmission TreatmentPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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