1.

13. How will you record in the books of firm, if premium for goodwill is brought incash by the new partner?​

Answer»

EXPLANATION:

Premium Method

Under this method, when the incoming partner BRINGS his share of goodwill in cash, the existing PARTNERS share it in the sacrificing ratio. However, when the amount of goodwill is PAID privately by the new partner to old partners privately in cash, no entry is passed in the books of the firm.

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