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amalgamation and sale of partnershipfirm
Accountancy
in question no:8 , why the goodwill has not brought into partners capital accounts?
Answers (5)
Thread Starter
Thalanki BalajiThis is the question sir
I think Goodwill will be considered for the purpose of calculation of Purchase Consideration. The purchase consideration payable by YTR Pvt. Ltd. will include the value of goodwill. The shares to be issued by the said company will be calculated on the basis of this value. That means indirectly partners will receive credit of goodwill in the form of equity shares ultimately.
Thread Starter
Thalanki BalajiThis is the question sir
When the partnership firm is sold, the total consideration received - the net assets transferred will be automatically captured as gain in realisation account. Hence no need to pass a separate entry for goodwill.
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