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If old goodwill exists in books and new goodwill is not to be shown what is the correct sequence?

Answer and explanation

Correct answer: First write off old goodwill then adjust new goodwill through capital accounts

Old goodwill is an asset of old firm so it should be removed first. Then fresh retirement goodwill is adjusted separately.

Related tags

GoodwillSequenceOld-New-GoodwillGoodwill SettlementReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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