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Which is the correct entry to remove old goodwill from books?

Answer and explanation

Correct answer: All partners capital accounts debit and goodwill account credit

When old goodwill is removed all partners capital accounts are debited in old ratio. Goodwill account is credited and closed.

Related tags

GoodwillWrite-OffJournal-EntryGoodwill SettlementReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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