Forums
Back
Goodwill
Accountancy
Doubt 1) please check whether the hidden goodwill para is correct or not? Because according to the data given the capital of the firm ( A+B+C ) is 53,000. Doubt 2) in the example 2, they have given 1,20,000 as goodwill, then why it is accounted for only 40,000.
Answers (5)
1) When they give 18000 as 1/4th of capital we have to find new capital with that by 18000*4 then solve 2) Goodwill is always in Sacrificing ratio , so they found that and then solved , here the total is 120000 but they are finding out only for the new partner , its not a complete example just to explain the concept
Your Reply