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In which situation may hidden goodwill be treated as zero?

Answer and explanation

Correct answer: When estimated capital and actual capital are equal

If there is no difference between estimated and actual capital, hidden goodwill does not arise. In exams check the difference.

Related tags

Hidden GoodwillZero GoodwillConceptGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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