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If a new partner does not bring goodwill separately and brings it included in capital, when may explicit goodwill adjustment be needed?

Answer and explanation

Correct answer: When the question asks for goodwill adjustment

If the question asks for goodwill adjustment, entry must be made. Always read the question wording carefully.

Related tags

Included GoodwillQuestion InterpretationAdmissionGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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