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Goodwill a/c?

Pankaj Arora (Learner) (3134 Points)

14 March 2012

Dear Friends

I saw a company balance sheet they created goodwill in books pls let me know how to create goodwill means from where we have to pick goodwill amount? And second thing if goodwill a/c debit and another which a/c will credit

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7 Replies

Jitendra Vyas (Commercial Officer) (178 Points)
Replied 14 March 2012

Amount of goodwill in any case valued by followed various techniques and debiting goodwill in against crediting capital reserve

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shishir malla (none) (21 Points)
Replied 14 March 2012

what does the word goodwill written off and goodwill raised means for????? nd what do we do and pass the entries if one of the partners in partnership pays liabilities of the creditor nd we have to reconstitute the partnership????

akshay (student C.A.PCC) (105 Points)
Replied 14 March 2012

Right Manish, Unless one pay any consideration for the same as per AS 10

Ankit (CA Final) (75 Points)
Replied 14 March 2012

self generated goodwill can not be part of financial book of accounts, goodwill can be there in Balance Sheet but only when we had paid any consideration for that

CA Sachin Rastogi (Audit/IFRS Manager) (338 Points)
Replied 15 March 2012

Agreed with Ankit. Even under International Accounting Standard recognition of self generated goodwill is prohibited.

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Dolly (Student) (81 Points)
Replied 15 March 2012

YES i do agree with that we could not show self generated goodwill in our balance sheet according to accounting standard .Goodwill can be shw in books of accounts only when we paid any consideration 4 that.