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When the incoming partner brings his share of goodwill in cash and it is retained in the firm which account is credited?

Answer and explanation

Correct answer: Old Partners' Capital Accounts

Goodwill brought in cash is credited to old partners' capital accounts in sacrificing ratio. Use sacrificing ratio for goodwill distribution.

Related tags

Cash GoodwillCapital AccountsSacrificing RatioGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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