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Class 12 Accountancy Reconstitution - Admission of a Partner Goodwill AccountingEasy

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Which is the most correct general rule in goodwill accounting?

Answer and explanation

Correct answer: New partner is debited and sacrificing old partners are credited

When goodwill is not brought in cash, the general adjustment debits the new partner. Sacrificing old partners are credited.

Related tags

General Rule Goodwill Adjustment Admission Goodwill Accounting Reconstitution Admission Of A Partner Accountancy Class 12 Mcq

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