08 August 2019
One among the two partners in a firm took a mortgage loan on his personal account and such loan proceeds were remitted via neft to purchase a existing partnership firm.
Total amount paid was Rs. 12,00,000/-. (2,00,000 for fixed assets approx. and 10,00,000 for goodwill)
Can such goodwill be claimed in books of accounts as it is in the nature of purchased goodwill ? And can depreciation be charged on it ?
Also, can such amt Rs. 12,00,000/- in all be shown as capital contribution by such partner in the new firm books of accounts ?
08 August 2019
Such goodwill can be claimed in books of accounts as it is in the nature of purchased goodwill. No depreciation can be charged on it. Such amt Rs. 12,00,000/- in all can be shown as capital contribution by such partner in the new firm books of accounts.
08 August 2019
Dear Sir, thank you for your views. As such payment was made without any agreement for takeover, so is it advisable to claim such goodwill in books of accounts ??
CAclubindia
