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Why can the new partner's goodwill still be adjusted after writing off old goodwill?

Answer and explanation

Correct answer: Because both relate to different purposes

Old goodwill is for removing an old book asset. New goodwill compensates sacrifice caused by the admission of the new partner.

Related tags

Old GoodwillNew GoodwillComparisonGoodwill AccountingReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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