When a new partner brings his share of g

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Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Admission of a Partner

Question:

When a new partner brings his share of goodwill in cash, the amount is credited to-

Options:

Premium for goodwill account

New partners capital account

Old partners capital account

Bank account

Correct Answer:

Premium for goodwill account

Explanation:

The correct answer is Option (1) → Premium for goodwill account