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Goodwill brought in by a new partner is credited to
AGoodwill A/c (typical) (typical)
BProfit & Loss A/c (typical)
CNew partner (typical) (typical)
DOld partners in sacrificing ratio
Answer & Solution
Correct answer: D. Old partners in sacrificing ratio
1. The premium for goodwill compensates the old partners for the share they sacrifice.
2. Hence it is credited to old partners in their sacrificing ratio.
3. It does not stay in a Goodwill A/c on the books, nor go back to the new partner.
4. Hence (B) is correct.
_Source: Maharashtra Balbharati Std XII Book-Keeping & Accountancy, Ch 3 "Reconstitution of Partnership (Admission of Partner)", §3.2 ¶§3.2_
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