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When goodwill account is raised in the books in which ratio are old partners credited?

Answer and explanation

Correct answer: In old profit sharing ratio

Raised goodwill represents the reputation of the old firm so old partners are credited in old ratio. This is different from goodwill brought in cash.

Related tags

Raise GoodwillOld RatioJournalGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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