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The incoming partner brings only half of his goodwill share in cash. Which account is usually debited for the unpaid part?

Answer and explanation

Correct answer: New Partner's Current Account

For the unpaid part of goodwill the new partner's current or capital account is debited. Do not ignore the unpaid amount in exams.

Related tags

Partial GoodwillCurrent AccountEntryGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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