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If the new partner cannot bring his share of goodwill in cash, which account is usually debited?

Answer and explanation

Correct answer: New partner's Current Account or Capital Account

If the new partner does not bring cash, adjustment is made through his account. Old partners are credited in sacrificing ratio.

Related tags

Goodwill Not BroughtAdjustment EntryNew Partner AccountGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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