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Journal Entries for Recording Goodwill

At the time o...

Question

At the time of admission, an incoming partner can contribute his share of goodwill in the form of

A

None of the above

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B

may or may not pay cash for goodwill

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C

Does not pay cash

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D

In form of cash

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Solution

The correct option is B
may or may not pay cash for goodwill

It can be provided either in the form of cash or asset

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Similar questions

Q. State 'True' or 'False'

The new partner must pay his share of goodwill in cash only.

Q. New incoming partner pays his share of goodwill in cash and profit sharing ratio of old partner is changed, Goodwill be distributed among old partners ____________.

Q. The new partner does not bring cash for his share of goodwill under the______.

Q. ___________ method is followed when the new partner does not bring in his share of goodwill in cash.

Q. When the incoming partner bring his share of goodwill in cash, which of these methods of revaluation of goodwill is appropriate?

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Journal Entries for Recording Goodwill

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