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If the deed requires goodwill to be brought in cash on admission but the new partner does not bring cash what is the usual adjustment in old books?

Answer and explanation

Correct answer: Adjustment through new partners current or capital account

If cash is not brought goodwill may be adjusted through the new partners account. Old partners are credited in sacrificing ratio.

Related tags

Goodwill AdjustmentAdmissionDeedPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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