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If Goodwill Account is opened on admission of a partner at what value is it opened?

Answer and explanation

Correct answer: At the full value of firm's goodwill

When Goodwill Account is opened it is generally recorded at the full value of firm goodwill. Do not restrict it to the incoming partner's share.

Related tags

Goodwill AccountFull ValueEntryGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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