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What is the benefit of adjusting goodwill without opening goodwill account in books?

Answer and explanation

Correct answer: It avoids unnecessarily increasing assets

Not opening goodwill account avoids creating an artificial asset in the balance sheet. In exams treat it as capital adjustment method.

Related tags

AccountancyGoodwill AccountAdjustmentGoodwill SettlementReconstitution Retirement Or Death Of A PartnerClass 12 Mcq

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