Dear Sir
One my cleint started a jewellery showroom as a private limited compnay with promoters A & B. The company paid 15 laks to the promoter A for using his brand name, which is already have good reputation in jewellery market, and Promoer A is having jewellery outlets of 10 with that name. How can we account the amount paid in the newly opened private limited company, as purchased goodwill......If yest, in that case, can it capitalize and amortize over certain period or be charged to the expense of the year it incurred??
Please clarify
Thanks
Shanvas
CAclubindia
