17 October 2011
If there is purchased goodwill in the balance sheet and then after admission of a new partner the partners further value g/w so self generated g/w shall be only what is now valued rite ? and total goodwill will be selg generated +already appearing in b/s ?
30 October 2011
Hi, as far as the first part is concerned, u r absolutely right. but the total goodwill part is not correct because as per AS 26, self generated goodwill can not be shown in the books as it does not have any cost. hence, for the purpose of admission of new partner, it is raised in old ratio and w/off in new ratio so as not to appear in balance sheet. Regards, CA Shakuntala Chhangani
CAclubindia
