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If goodwill already appears in old books at ₹40000 before admission to whom is it debited for writing off?

Answer and explanation

Correct answer: Old partners' capital in old ratio

Existing goodwill belongs to the old firm so it is debited to old partners' capital accounts in old ratio. In exams keep old and new goodwill separate.

Related tags

Existing GoodwillOld RatioWrite OffGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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