When the new partner pays for goodwill in cash, the amount should be debited in the firm’s book to _____.
A. Cash account
B. Capital account of a new partner
C. Goodwill account
D. None of the above
Answer:A
When the new partner pays for goodwill in cash, the amount should be debited in the firm’s book to _____.
A. Cash account B. Capital account of a new partner C. Goodwill account D. None of the above