Explain the treatment of goodwill in the books of a firm on admission of a partner when godwill appears in the Balance Sheet.
Explain the treatment of goodwill in the books of a firm on admission of a partner when godwill appears in the Balance Sheet.
Anurag Pathak Changed status to publish July 18, 2023
Existing goodwill, (i.e., goodwill appearing in the Balance Sheet) is written off to the Old Partner’s Capital Accounts in their old profit-sharing ratio.
Old Partner’s Capital A/cs Dr.
To Goodwill A/c
(Being the existing goodwill written off in the old ratio)
Anurag Pathak Changed status to publish July 18, 2023
