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If inferred total capital is rupees twelve lakh and actual total capital is rupees fourteen lakh what is the correct conclusion about hidden goodwill?

Answer and explanation

Correct answer: There will be no hidden goodwill

The inferred value is less than actual capital so positive goodwill does not arise. In such a case hidden goodwill is not taken.

Related tags

GoodwillHidden-GoodwillNegative-DifferenceReasoningPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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