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If new goodwill account is not opened what will be its effect in the balance sheet?

Answer and explanation

Correct answer: New goodwill will not appear as an asset

In direct capital adjustment only partners capital accounts are affected. New goodwill does not become an asset in the balance sheet.

Related tags

GoodwillBalance-SheetNo-AccountGoodwill SettlementReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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