12 May 2016
if the goodwill is purchased, to be used for a certain number of years, then the question of amortisation will arise. Please elaborate your situation.
13 May 2016
If it is purchased for life time, then no need to amortise the same. The question of amortisation comes when the goodwill purchase is for a term say 3 years, 5 years and so on. But goodwill purchases for life time need not be amortised. The entries for amortisation are similar to depreciation entry.... Debit amortised goodwill (expenses) Credit Goodwill
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