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If the partnership deed states that goodwill brought by a new partner will remain in the firm, what does this clause clarify?

Answer and explanation

Correct answer: Accounting treatment of goodwill amount

This clause tells whether goodwill amount will be shared among partners or retained in the firm. In exams, read admission related deed terms carefully.

Related tags

GoodwillAdmission Of PartnerDeed ClausePartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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