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Which entry is correct when goodwill is adjusted without raising goodwill account on retirement?

Answer and explanation

Correct answer: Continuing partners' capital accounts debited and retiring partner's capital account credited

Without raising goodwill account the adjustment is made directly through capital accounts. This is the common exam entry.

Related tags

Goodwill-SettlementJournal-EntryAccountancyGoodwill SettlementReconstitution Retirement Or Death Of A PartnerClass 12 Mcq

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