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Premium and personal goodwill

What is the entery if partner brings a premium goodwill. And how it is know in exam or any sum it is premium or personal goodwill


Jashwanth S

Jashwanth S

CMA Inter

2K+

22-Jun-20 23:10

14

Answers (1)

If the incoming partner brings goodwill in cash, the existing partners share it in the sacrificing ratio. If goodwill is paid privately by the new partner to old partners privately in cash, no entry is passed in the books of the firm. Question will mention


sudha reddy

sudha reddy

Moderator

23-Jun-20 10:29