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Partnership accounts

Accountancy

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

Ram Shete

CA Inter

★ 2K+

06-Dec-20 20:50

315

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..