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If goodwill premium is deposited in bank but not yet distributed, which account is credited?

Answer and explanation

Correct answer: Premium for Goodwill Account

In the first entry, Bank is debited and Premium account is credited. Later the premium is distributed to old partners.

Related tags

Premium AccountJournalGoodwillGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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