Goodwill in partnership
rahul vira (18 Points)
24 July 2020
what is the exact logic behind the raising and writing off of goodwill during admission of a partner in a partnership firm
3 Replies
Sagar Patel
(Tax and Business Consultant)
(11611 Points)
Replied 24 July 2020
Goodwill is a result of the past efforts of the all old partners. To know the true value of business, created by all old partner n give the credit of the same to old partner Goodwill is calculated at time of admission n credited to old partner.
And as Goodwill is self created intangible assets, which can't be shown in balance sheet it's written off thereafter.
And as Goodwill is self created intangible assets, which can't be shown in balance sheet it's written off thereafter.
rahul vira
(18 Points)
Replied 24 July 2020
Thank you so much sir for your answer.
It helped me a lot
It helped me a lot
Sagar Patel
(Tax and Business Consultant)
(11611 Points)
Replied 24 July 2020
You'r most welcome, sir
Recent Topics
- Missing invoice in gst
- GST on consultancy
- Linking adhaar to UAN without employer
- WHETHER ITC REVERSAL TH. GSTR 3B OR DRC03
- Advance Tax For Freelancers
- Is fvu 8.8 version available ?
- Interest and penalty on advance tax shortfall
- Joint Account with 3 legal heirs.......
- TCS adjustment
- GST audit and scrutiny
Related Threads
CAclubindia
