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In which situation will retiring partner's goodwill be directly credited to his capital account?

Answer and explanation

Correct answer: When adjustment is made without raising goodwill account

Without raising goodwill account continuing partners' capital accounts are debited and retiring partner's account is credited. This is the key exam entry.

Related tags

Goodwill-SettlementJournal-EntryConceptGoodwill SettlementReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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