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What does debiting goodwill amount to the new partner's capital account indicate?

Answer and explanation

Correct answer: Goodwill was not brought in cash

Debiting the new partner shows that he has not paid goodwill in cash. This treatment applies when goodwill is not brought in cash.

Related tags

Debit New PartnerGoodwill Not BroughtInterpretationGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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