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On admission of a new partner one old partner is also gaining. In internal adjustment of goodwill on which side will that gaining old partner appear?

Answer and explanation

Correct answer: Debit side

Any partner who gains future profit is debited in goodwill adjustment. This applies to both old and new gaining partners.

Related tags

GoodwillAdmissionGaining Old Partner ConceptPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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