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Commerce · Q1100

Accounting

Graduate and Post Graduate · Commerce · question 1100

Q1100

If goodwill account is already opened in the books and new partner brings his share of goodwill in cash, then accounting effect would be

A.
Old goodwill account will be closed
B.
Goodwill bought by new partner will be distributed between old partners in sacrificing ratio
C.
A and B both
Answer
D.
None of the above

Answer: Option C

Solution

Answer: Option C
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