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If old partners immediately withdraw the goodwill amount brought by the new partner which account is debited?

Answer and explanation

Correct answer: Old partners' capital accounts

On withdrawal old partners' capital accounts are debited and cash account is credited. Record goodwill distribution first and withdrawal next.

Related tags

WithdrawalJournalCash GoodwillGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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