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If goodwill account is raised and then written off in new ratio the net effect is equal to what?

Answer and explanation

Correct answer: Internal adjustment based on sacrifice and gain

Credit in old ratio and debit in new ratio gives the same effect as sacrifice and gain adjustment. This is an important exam shortcut.

Related tags

GoodwillRaise Write OffConceptPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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