Target Exam

CUET

Subject

Accountancy Part A

Chapter

Admission of a Partner

Question:

At the time of admission, if goodwill was raised but not written off then its impact will be:

Options:

Overstatement of Assets

Overstatement of Liabilities

Understatement of Assets

Overstatement of both Assets and Liabilities

Correct Answer:

Overstatement of Assets

Explanation:

The correct answer is Option (1) → 

Overstatement of Assets