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What is the correct form of the entry for writing off goodwill under memorandum method?

Answer and explanation

Correct answer: Continuing partners capital accounts debit and goodwill account credit

If goodwill is not to be kept in the new firm it is written off among continuing partners in new ratio. This closes goodwill account.

Related tags

GoodwillMemorandum-MethodWrite-Off-EntryGoodwill SettlementReconstitution Retirement Or Death Of A PartnerAccountancyClass 12 Mcq

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