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When the existing goodwill in books is written-off at the time of admission of new partner, the new partners’ capital account is not debited.
  • a)
    True
  • b)
    Partially false
  • c)
    False
  • d)
    Can't say
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
When the existing goodwill in books is written-off at the time of admi...
Are not responsible for any portion of the written-off amount. The written-off amount is borne by the existing partners in the ratio of their profit sharing ratio. This is because the existing partners have already benefitted from the goodwill in the past and the new partner has not contributed to it. Therefore, the new partner should not be burdened with any portion of the written-off amount.
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Community Answer
When the existing goodwill in books is written-off at the time of admi...
Existing goodwill is written-off in old ratio by debiting old partners’ capital accounts.
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When the existing goodwill in books is written-off at the time of admission of new partner, the new partners’ capital account is not debited.a)Trueb)Partially falsec)Falsed)Cant sayCorrect answer is option 'A'. Can you explain this answer?
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