When goodwill is not retained in the business, the entries in the new partners books will be to debit______________
When goodwill is raised in the books at full value, the entry is
Dr Goodwill Account
Cr Old partners capital account (old ratio)
When the raised goodwill is written off, entry will be:
Dr All partners capital account
Cr Goodwill accounts
Note: goodwill written off includes new partners in the new profit sharing ratio
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