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If old partners have fluctuating capital accounts, where is goodwill premium credited?

Answer and explanation

Correct answer: Old partners capital accounts

Under fluctuating capital method, adjustments are made directly through capital accounts. So premium is credited to old partners' capital accounts.

Related tags

Fluctuating CapitalPremiumGoodwillGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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