retirement case

25 August 2018

if there is increment in goodwill
can we credit the excess amount in revaluation account

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4 Replies

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 25 August 2018

No, you need to either add in Goodwill or debit to capital account

(Guest)

If the goodwill is appearing in the balance sheet before retirement, then write it off by debiting capital accounts of all partners.

The value of new goodwill will be adjusted in gaining / sacrificing ratio.

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Pranay Dubey (51 Points)
Replied 27 August 2018

and what if there is not given new PSR ?
what will be my gaining ratio

can i assume my old PSR As a gaining ratio ?

(Guest)

Yes. Gaining ratio is old PSR.

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