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What is the simplest rule to remember in goodwill accounting?

Answer and explanation

Correct answer: New partner pays and sacrificing old partners benefit

Goodwill is the price of the profit share received by the new partner. It is distributed among sacrificing old partners.

Related tags

Goodwill RuleAdmissionBasic SummaryGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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