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AS-26(goodwill) application in amalgamation, conversion and sale of partnership firms.

Accountancy

As per AS-26,only purchased goodwill can be shown in books, but in problems related to conversion/sale of partnership firms to company in study material they are providing purchase consideration for goodwill also.

Deagle -oM

CA Final

★ 0

21-Jul-20 12:25

382

Answers (4)

Can you tell which illustration exactly?

ruchi lahoti

CA Inter

★ 27K+

22-Jul-20 12:48

similar type of question has also been solved in practice manual(old syllabus)q.5 by not taking goodwill in balance sheet

Screenshot_2020-07-22-16-50-15-23_e2d5b3f32b79de1d45acd1fad96fbb0f.png

Thread Starter

Deagle -oM

CA Final

★ 0

22-Jul-20 16:55

generally in conversion/sale of firm to company problems,they are including goodwill ,in business purchase a/c , as well as in computing P.C . Isn't that contradicting AS-26 acc to which only purchased goodwill can be shown in books.

Thread Starter

Deagle -oM

CA Final

★ 0

22-Jul-20 17:02

Thread Starter

Deagle -oM

AS-26 does not apply to goodwill arising on an amalgamation and goodwill arising on consolidation

ruchi lahoti

CA Inter

★ 27K+

23-Jul-20 11:24