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If a new partner does not bring goodwill in cash and one old partner is also gaining, what happens to that gaining old partner?

Answer and explanation

Correct answer: He is debited for his gain

Goodwill burden is borne by gaining partners. Therefore even an old partner may be debited if he gains.

Related tags

GoodwillAdmissionGaining Old Partner ConceptPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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