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Class 12 Accountancy Reconstitution - Admission of a Partner Goodwill AccountingMedium

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When is the goodwill amount credited to old partners?

Answer and explanation

Correct answer: When they sacrifice future profit share

Old partners give up a part of future profit so they receive goodwill credit. This is the core principle of admission.

Related tags

Goodwill Credit Principle Admission Goodwill Accounting Reconstitution Admission Of A Partner Accountancy Class 12 Mcq

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