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When Goodwill Account is opened old partners' capital accounts are credited in which ratio?

Answer and explanation

Correct answer: Old profit-sharing ratio

Full goodwill belongs to the old reputation of the firm so old partners are credited in old ratio. Distinguish this from premium method.

Related tags

Goodwill AccountOld RatioCapital CreditGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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