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On death of a partner in goodwill adjustment, on what basis is the deceased partner credited and continuing partners debited?

Answer and explanation

Correct answer: Deceased partner by old share and continuing partners by gaining ratio

The deceased partner's right is based on his old profit share. Continuing partners gain his share, so they are debited in gaining ratio.

Related tags

GoodwillDeathAccounting LogicPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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