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Premium and personal goodwill

Accountancy

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

CMA Inter

★ 2K+

22-Jun-20 23:10

309

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