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When Goodwill Exist in the Business

State 'True' ...

Question

State 'True' or 'False'

When goodwill is written off, goodwill amount is debited.

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Solution

False

Explanation: If old (or existing) goodwill appears in the books of a firm, then at first, it is written off by debiting the Old Partners’ Capital Accounts in their old profit sharing ratio and crediting the Goodwill Account.

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Similar questions

Q. State whether the following statements are true or false :

If goodwill is written off retiring partner’s capital account is debited.

Q. When existing Goodwill is written off, is the partner's Capital Account debited or credited?

Q. State 'True' or 'False'

If the goodwill account raised up, goodwill account is debited.

Goodwill is written off by debiting all the partners’ capital account in the ___

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