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If goodwill does not already appear in books then which entry is generally passed on retirement?

Answer and explanation

Correct answer: Debit gaining partners capital accounts and credit retiring partner capital account

Under the modern method adjustment is made without opening a goodwill account. In exams identify hidden goodwill through capital adjustment.

Related tags

AccountancyJournal EntryGoodwillGoodwill SettlementReconstitution Retirement Or Death Of A PartnerClass 12 Mcq

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