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The statement says it is correct to distribute goodwill burden in old ratio in every question without finding gaining ratio. How is this statement?

Answer and explanation

Correct answer: Incorrect

Goodwill burden is generally distributed in gaining ratio. Old ratio is useful only when continuing partners gain in that same ratio.

Related tags

GoodwillAssertionConceptGoodwill SettlementReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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