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When the new partner brings premium in cash, which account is credited first?
ASacrificing partners' A/c
BGoodwill written off A/c
CRevaluation reserve A/c
DPremium for goodwill A/c
Answer & Solution
Correct answer: D. Premium for goodwill A/c
Cash is debited and Premium for Goodwill A/c is credited, then that balance is passed on to the sacrificing partners.
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