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Partnership accounts

Here they have credited partners capital account under the head goodwill why is it so??? Arundhati supposed today bit the incoming partner? Why?

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Ram Shete

Ram Shete

CA Inter

2K+

06-Dec-20 20:50

21

Answers (2)

Here is the concept of hidden goodwill....his share of capital is 1/6th..that is 50000..so total capital will be 300000..and actual capital is 21000(88000+72000+50000)...then goodwill is total capital less actual capital...90000 goodwill is adjusted in 3:2 ratio..


Keerthi  P

Keerthi P

CA Inter

90

07-Dec-20 15:14

Yes but we are not supposed to show the amount of goodwill under the head GOODWILL and here they have used the name goodwill


Ram Shete

Ram Shete

CA Inter

2K+

07-Dec-20 18:41