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Why is new goodwill not shown after writing off old goodwill if Goodwill Account is not opened?

Answer and explanation

Correct answer: Because goodwill is adjusted only through capital accounts

Goodwill may be adjusted through capital accounts without showing it as an asset. Not opening Goodwill Account does not mean no goodwill exists.

Related tags

Capital AdjustmentNo Goodwill AccountConceptGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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