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When goodwill is not retained in the business, the entries in the new partners b...


Question

When goodwill is not retained in the business, the entries in the new partners books will be to debit______________

Options

A) Goodwill account and credit partners capital account

B) Cash account and credit goodwill account

C) Goodwill account and credit cash account

D) Partners capital account and credit goodwill account

The correct answer is D.


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