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Which statement is correct when a new partner does not bring goodwill in cash?

Answer and explanation

Correct answer: New partner's account is debited and sacrificing partners are credited

Even when cash is not brought the sacrifice of old partners is adjusted. Hence new partner is debited and sacrificing partners are credited.

Related tags

GoodwillAdmissionAccounting EntryPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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