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When goodwill is raised and written off in new ratio if an old partner's new share is more than old share what may be his net effect?

Answer and explanation

Correct answer: Net debit

If credit in old ratio is less than debit in higher new ratio a net debit arises. This shows the position of a gaining partner.

Related tags

Raise Writeoff GoodwillNet EffectGaining PartnerGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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