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Partnership admission

Accountancy

So here goodwill can be analysed as 2 cases bought in cash and as premium. So here how will we get to know whether goodwill is bought in as cash or premium.

Sugam SM

CA Final

★ 9K+

25-Apr-22 10:51

368

Answers (6)

In this Problem, Goodwill brought in cash(Because not specially mentioned that it is premium for goodwill) so first, transfer it to new partner capital A/c and then new partner capital A/c to old partners capital A/c.

Jitendra Kumar

CA Final

★ 41K+

25-Apr-22 14:00

Goodwill is adjusted through the partner's account.

CA Suraj Lakhotia

Admin

26-Apr-22 15:11

Sir will they give specifically in the question whether goodwill is bought in by partner as premium?

Thread Starter

Sugam SM

CA Final

★ 9K+

26-Apr-22 15:15

Thread Starter

Sugam SM

Sir will they give specifically in the question whether goodwill is bought in by partner as premium?

Goodwill brought in cash or brought as premium is same. Just nomenclature differs.

CA Suraj Lakhotia

Admin

27-Apr-22 10:24

Sir even said if partner himself is bringing goodwill within himself say like Ambani Tata. So in that case what is the treatment sir?

Thread Starter

Sugam SM

CA Final

★ 9K+

27-Apr-22 10:33

Thread Starter

Sugam SM

Sir even said if partner himself is bringing goodwill within himself say like Ambani Tata. So in that case what is the treatment sir?

In this case the firm is getting goodwill and not the partner getting existing goodwill of the firm. Generally in such cases the incoming partner would bring less capital and may still enjoy higher share of profit.

CA Suraj Lakhotia

Admin

28-Apr-22 10:34