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If the question says goodwill is not to be retained in books which entry should be avoided?

Answer and explanation

Correct answer: Leaving goodwill account with permanent debit balance

When goodwill is not to be retained there should be no permanent balance in goodwill account. Adjust through capital or current accounts.

Related tags

GoodwillNo-Goodwill-In-BooksAccounting-TreatmentPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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