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Question
Write the word/term or phrase which can substitute the following statement.
Account which is debited when new partner brings cash for his share of goodwill.
One Word/Term Answer
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Solution
Cash/Bank A/c
Explanation: Cash/Bank A/c is debited when the new partner brings cash for his/her share of goodwill, following the rule "Debit what comes in". This amount of goodwill (premium) is transferred to the capital accounts of sacrificing partners in the sacrificing ratio of the old partners.
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