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Class 12 Accountancy Partnership Accounts - Basic Concepts GoodwillExpert

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Which principle is most correct while making internal adjustment of goodwill in partnership?

Answer and explanation

Correct answer: Gaining partners are debited and sacrificing partners are credited

No cash is involved in internal adjustment. Partners gaining future profit compensate those sacrificing it.

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Goodwill Internal Adjustment Principle Partnership Accounts Basic Concepts Accountancy Class 12 Mcq

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