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Class 12 Accountancy Reconstitution - Admission of a Partner Goodwill AccountingExpert

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When will an old partner get a net credit when goodwill is raised and written off?

Answer and explanation

Correct answer: When his new share is lower than old share

Credit in old ratio and lower debit in new ratio gives a net credit. It identifies a sacrificing partner.

Related tags

Raise Writeoff Goodwill Net Effect Sacrificing Partner Goodwill Accounting Reconstitution Admission Of A Partner Accountancy Class 12 Mcq

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