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The new partner could not bring full goodwill premium. Through which account is the shortfall adjusted?

Answer and explanation

Correct answer: New partner's capital or current account

Unbrought premium is adjusted through the new partner's account. This amount is credited to old partners in sacrificing ratio.

Related tags

Unbrought GoodwillAdjustmentCapitalGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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