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The deed requires the new partner to bring goodwill in cash but he brings only half of it. How is the remaining half generally adjusted?

Answer and explanation

Correct answer: Through new partners account

Goodwill not brought in cash can be adjusted through the new partners capital or current account. Old partners are credited in sacrificing ratio.

Related tags

AdmissionGoodwill AdjustmentPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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