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When goodwill is adjusted without opening goodwill account which entry is correct?

Answer and explanation

Correct answer: Gaining partners capital accounts debit and retiring partner capital account credit

Without opening goodwill account the adjustment is made directly through capital accounts. Gaining partners bear the burden.

Related tags

GoodwillJournal-EntryCapital-AdjustmentGoodwill SettlementReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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