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When premium for goodwill is brought in cash, which account is credited?

Answer and explanation

Correct answer: Premium for Goodwill Account

The amount brought as premium is first credited to Premium for Goodwill Account. Later it is distributed to old partners.

Related tags

Premium AccountCredit EntryGoodwillGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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